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National Aeronautics and Space Administration

Performance and
Year

2006
Fiscal Year

Accountability Report
Fiscal
NASA’s Performance and
Accountability Report
This is the National Aeronautics and Space Administration’s (NASA) Fiscal Year 2006 (FY 2006) Performance and
Accountability Report. It is a detailed account of NASA’s performance in achieving the long-term Strategic Goals,
multi-year Outcomes, and Annual Performance Goals for the Agency’s programs, management, and budget. This
Report includes detailed performance information and financial statements, as well as management challenges and
NASA’s plans and efforts to overcome them.
NASA’s FY 2006 Performance and Accountability Report meets relevant U.S. government reporting requirements
(including the Government Performance and Results Act of 1993, the Chief Financial Officers Act of 1990, and the
Federal Financial Management Improvement Act of 1996). This Report also tells the American people how NASA
is doing.

Part 1—Management Discussion & Analysis. Part 1 highlights NASA’s overall performance,
including financial and management activities. Part 1 also describes NASA’s organization,
performance assessment and rating processes, and management control systems.

Part 2—Detailed Performance Data. Part 2 provides detailed information on NASA’s prog-
ress toward achieving specific milestones and goals as defined in the Agency’s Strategic Plan
and, in further detail, in the FY 2006 Performance Plan Update. Part 2 also includes the
Agency’s Performance Improvement Plan, which details the actions that NASA is taking to
achieve all measures the Agency did not meet in FY 2006.
Part 3—Financials. Part 3 includes the Agency’s financial statements, audit results by inde-
pendent accountants in accordance with government auditing standards, and responses to
audit findings.

Appendices—The Appendices include required Inspector General follow-up audits (Appen-


dix A), an FY 2005 Performance Improvement Update (Appendix B), a list of OMB Program
Assessment Rating Tool (PART) recommendations for FY 2005 (Appendix C), and detailed
source information (Appendix D).

A PDF version of this Performance and Accountability Report is available at http://www.nasa.gov/about/budget/


index.html. Please send questions and comments to hq-par@mail.nasa.gov.

Cover: A Delta II rocket stands ready at Vandenberg Air Force Base, California, to launch the CALIPSO and Cloudsat satellites. The two
satellites, which launched on April 28, 2006, gather information about clouds, ice crystals, aerosols, and a range of related subjects. (NASA/
B. Ingalls)
Message from
the Administrator
November 15, 2006

Fiscal Year 2006 was a very good year for NASA. We made significant progress in
implementing the goals articulated in NASA’s Strategic Plan to carry out our mission
of space exploration, scientific discovery, and aeronautics research. With the NASA
Authorization Act of 2005, Congress affirmed the Vision for Space Exploration and the
course that President Bush set for us to advance our Nation’s economic, scientific,
and security interests. We have much remaining yet to accomplish, but we are making
steady progress in achieving our goals.

Robotic and human spaceflight are the most technically challenging endeavors we can undertake as a Nation.
Completion of the International Space Station (ISS), retirement of the Space Shuttle, and transitioning to new
exploration systems will be NASA’s greatest challenges over the next several years, and we are moving forward to
achieve all three goals. In August 2006, we re-started assembly of the ISS, and we plan to complete construction
by 2010 and then retire the Space Shuttle. Following the Exploration Systems Architecture Study completed in
2005, this year we awarded a contract to design and develop the Orion Crew Exploration Vehicle that will return
our astronauts to the Moon and eventually carry them to Mars and other destinations. NASA also signed Space
Act Agreements to demonstrate commercial crew and cargo transportation services to the ISS, and we refined our
designs for the Ares I Crew Launch Vehicle and Ares V heavy-lift Cargo Launch Vehicle to save money in life-cycle
costs. In the coming months, NASA will enter into development contracts for the upper stage of the Ares I Crew
Launch Vehicle, and we are partnering with the U.S. Air Force in developing the RS-68 engine for the Ares V Cargo
Launch Vehicle.

We are fostering a work environment throughout NASA in which engineers and technicians feel free to address
problems that may affect the safety of the crew and mission. We have completed three successful Shuttle flights to
the ISS since the Space Shuttle Columbia accident, and we are on track to complete all planned Shuttle flights by
2010, including a servicing mission to the Hubble Space Telescope in 2008.

NASA continues to be a world leader in space and Earth sciences. In 2006, the Nobel Prize for Physics was
awarded to Dr. John Mather, the first NASA employee to be awarded this honor. This year, we launched the New
Horizons mission to Pluto, the Cloudsat and CALIPSO satellites to monitor global climate change, the STEREO
mission to view the effects of solar activity on the Earth, and two additional heliophysics satellites—TWINS–A and
SOLAR–B. Today, robotic rovers and satellites explore Mars searching for evidence of life. Scientists working with
NASA’s astronomy and astrophysics missions search for planets—and possibly life—around other stars and try to
unlock the mysteries of the way the universe began and may ultimately end.

In FY 2006, we restructured our aeronautics research program to ensure that it will support long-term, cutting-edge
research aligned to our national priorities for the benefit of the broad aeronautics community in academia, industry,
and other government agencies. This restructuring reflects NASA’s commitment to restoring and maintaining core
aeronautics capabilities within the Centers.

These initiatives are part of NASA’s objective of creating ten healthy Centers, with each actively contributing to all
NASA missions. In FY 2006, we also began tackling the problem of our “uncovered capacity” workforce, those
employees who are not assigned directly to specific programs. At the beginning of FY 2006, NASA had approxi-
mately 3,000 uncovered positions, but by the end of the fiscal year, the estimate was reduced to approximately 300
positions.

We have many challenges ahead of us. In submitting this Report of our achievements and challenges in FY 2006,
NASA accepts the responsibility of reporting performance and financial data accurately and reliably with the same
vigor as we conduct our scientific research. For FY 2006, I can provide reasonable assurance that the performance
data in this Report are complete and reliable. Performance data limitations are documented explicitly.

In accordance with the Federal Financial Management Improvement Act (FFMIA), NASA’s Integrated Financial
Management System Core Financial Module (IFMSCFM) produces financial and budget reports. However,
because of unresolved data conversion issues, the system is unable to provide reliable and timely information for
managing current operations and safeguarding assets. Therefore, NASA’s IFMSCFM does not comply fully with the
requirements of the FFMIA, and the independent auditors were unable to render an opinion on our FY 2006 financial
statements. Instead, they issued a disclaimer of opinion. Therefore, I cannot provide reasonable assurance that
the financial data in this Report are complete and reliable. We will continue to focus on bringing NASA’s financial
management system into compliance.

NASA continues to improve the Agency’s internal control environment, compliance with established requirements
and standards, and heightened stewardship of the resources and assets entrusted to the Agency. In FY 2006,
NASA resolved two of four material weaknesses reported in FY 2005. This year, we report two continuing material
weaknesses and one new material weakness in internal control. With the exception of these three material weak-
nesses, I submit a qualified Statement of Assurance that reasonable controls are in place to achieve the Agency’s
programmatic, institutional, and financial management objectives. Internal control initiatives and corrective action
plans for closing material weaknesses are discussed in detail within the Systems, Controls, & Legal Compliance
chapter, Part 1, of this Report.

We have a lot of work ahead of us, but we are making solid progress. Therefore, it is my pleasure to submit NASA’s
FY 2006 Performance and Accountability Report.

Michael D. Griffin
Administrator

ii NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Table of Contents

PART 1: MANAGEMENT DISCUSSION & ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1


Mission, Vision, Values, & Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
NASA’s Mission Is on Track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Making Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
NASA’s Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
NASA’s Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
NASA Headquarters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Building Healthy NASA Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Measuring NASA’s Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Establishing Government Performance and Results Act (GPRA) Performance Measures . . . . . .7
Rating NASA’s Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Program Assessment Rating Tool (PART) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
President’s Management Agenda (PMA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Major Program Annual Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Performance Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Progress Toward Achieving NASA’s Strategic Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
A Guide to Performance Overviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Strategic Goal 1: Fly the Shuttle as safely as possible until its retirement,
not later than 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
Strategic Goal 2: Complete the International Space Station in a manner
consistent with NASA’s International Partner commitments and the needs
of human exploration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Goal 3: Develop a balanced overall program of science, exploration,
and aeronautics consistent with the redirection of the human spaceflight
program to focus on exploration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Sub-goal 3A: Study Earth from space to advance scientific understanding
and meet societal needs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Sub-goal 3B: Understand the Sun and its effects on Earth and the solar system. . . . . . . .25
Sub-goal 3C: Advance scientific knowledge of the origin and history of
the solar system, the potential for life elsewhere, and the hazards
and resources present as humans explore space. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
Sub-goal 3D: Discover the origin, structure, evolution, and destiny of
the universe, and search for Earth-like planets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

TABLE OF CONTENTS iii


Sub-goal 3E: Advance knowledge in the fundamental disciplines
of aeronautics, and develop technologies for safer aircraft and higher
capacity airspace systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
Sub-goal 3F: Understand the effects of the space environment on human
performance, and test new technologies and countermeasures
for long-duration human space exploration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
Strategic Goal 4: Bring a new Crew Exploration Vehicle into service
as soon as possible after Shuttle retirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
Strategic Goal 5: Encourage the pursuit of appropriate partnerships
with the emerging commercial space sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
Strategic Goal 6: Establish a lunar return program having the maximum
possible utility for later missions to Mars and other destinations. . . . . . . . . . . . . . . . . . . .46
Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
Financial Statements and Stewardship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
Overview of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
Ending Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
Limitation of the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
Key Financial-Related Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
Systems, Controls, & Legal Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
Overview . 55
Management Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
Corrective Action Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
New Material Weakness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
Continuing Material Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
Closed Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Office of the Inspector General Statement on Material Weaknesses at the Agency . . . . . . . . .61
Federal Financial Management Improvement Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
Improper Payments Information Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
NASA’s Efforts to Identify Erroneous/Improper Payments . . . . . . . . . . . . . . . . . . . . . . . . . .70
NASA’s Planned Fiscal Year 2007 IPIA Compliance Approach . . . . . . . . . . . . . . . . . . . . . .71
Legal Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
Looking Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
Staying on Target and on Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
Transitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
Maximizing NASA’s Workforce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
Improving Agency Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
Thinking (and Contracting) Outside of the Box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
Strengthening International Relationships and Collaboration . . . . . . . . . . . . . . . . . . . . . . . . . .75

iv NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


PART 2: DETAILED PERFORMANCE DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
Detailed Performance Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
NASA’s Performance Rating System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
Strategic Goal 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
Strategic Goal 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
Strategic Goal 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
Sub-goal 3A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
Sub-goal 3B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
Sub-goal 3C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .104
Sub-goal 3D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .110
Sub-goal 3E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117
Sub-goal 3F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .122
Strategic Goal 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126
Strategic Goal 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .130
Strategic Goal 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .132
Cross-Agency Support Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .137
Advanced Business Systems (Integrated Enterprise Management Program) . . . . . . . . . .138
Innovative Partnerships Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139
Efficiency Measures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .141
NASA’s FY 2006 Performance Improvement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143
PART 3: FINANCIALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155
Message from the Chief Financial Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157
Financial Management Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158
2006 Financial Management Improvement Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .158
Introduction to the Principal Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .160
Office of Inspector General Letter on Audit of NASA’s Financial Statements. . . . . . . . . . . . . .206
Report of the Independent Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .208
Chief Financial Officer’s Response to the Audit Report of the Independent Auditors . . . . . . .235
APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .237
Appendix A: Audit Follow-up Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1
Appendix B: FY 2005 Performance Improvement Plan Follow-up . . . . . . . . . . . . . . . . . . . . . . . B-1
Appendix C: OMB Program Assessment Rating Tool (PART) Recommendations . . . . . . . . . . . .C-1
Appendix D: Source Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D-1

TABLE OF CONTENTS v
vi NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Part 1: Management Discussion & Analysis
Previous page: A fish-eye-view lens curves the fixed service structure toward Space Shuttle Atlantis as it blasts off Launch
Pad 39B, propelled by columns of fire from the solid rocket boosters. At the lower left is the White Room that, when ex-
tended, gave the mission crew access to the Shuttle. After lift-off, Atlantis headed for rendezvous with the International
Space Station (ISS) on mission STS-115. Mission STS-115 was the 116th Space Shuttle flight, the 27th flight for Atlantis,
and the 19th flight to the ISS. (NASA)
Above: A crew transport vehicle, a modified “people mover” used at airports, approaches Shuttle Discovery after the
orbiter was cleared for crew departure at the conclusion of STS-121. The crew exits the Shuttle into a crew hatch access
vehicle and, after a brief medical examination, transfers into the crew transportation vehicle. The landing was the 32nd for
Discovery. (NASA)

2 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Mission, Vision, Values,
& Organization

NASA’s Mission Is on Track


Congress enacted the National Aeronautics and Space Act of 1958 to provide for research into problems of flight
within and outside Earth’s atmosphere and to ensure that the United States conducts activities in space devoted to
peaceful purposes for the benefit of humankind. Nearly 50 years later, NASA is continuing the American traditions
of pioneering, exploration, and expanding the realm of what is possible by using NASA’s unique competencies in
science and engineering to fulfill the Agency’s purpose and achieve NASA’s Mission:

To pioneer the future in space exploration,


scientific discovery, and aeronautics research.

Making Progress
On January 14, 2004, President George W. Bush announced A Renewed Spirit of Discovery: The President’s
Vision for U.S. Space Exploration, which Congress endorsed in the NASA Authorization Act of 2005. This directive
commits the Nation to a journey of exploring the solar system, returning astronauts to the Moon in the next decade,
then venturing to Mars and beyond. In issuing it, the President challenged NASA to establish innovative programs
to enhance understanding of the planets in this solar system and around other stars, to ask new questions, and to
answer questions that are as old as humankind.

To achieve this directive, NASA established six Strategic Goals:


Strategic Goal 1: Fly the Shuttle as safely as possible until its retirement, not later than 2010.
Strategic Goal 2: Complete the International Space Station in a manner consistent with NASA’s International
partner commitments and the needs of human exploration.
Strategic Goal 3: Develop a balanced overall program of science, exploration, and aeronautics consistent with
the redirection of the human spaceflight program to focus on exploration.
Strategic Goal 4: Bring a new Crew Exploration Vehicle into service as soon as possible after Shuttle
retirement.
Strategic Goal 5: Encourage the pursuit of appropriate partnerships with the emerging commercial space
sector.
Strategic Goal 6: Establish a lunar return program having the maximum possible utility for later missions to Mars
and other destinations.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 3


NASA’s Values
The Agency’s four shared core values support NASA’s commitment to technical excellence and express the ethics
that guide the Agency’s behavior. These values are the underpinnings of NASA’s spirit and resolve.
• Safety: NASA’s constant attention to safety is the cornerstone upon which NASA builds mission success.
NASA employees are committed, individually and as a team, to protecting the safety and health of the public,
NASA team members, and the assets that the Nation entrusts to the Agency.
• Teamwork: NASA’s most powerful tool for achieving mission success is the Agency’s highly skilled, multi-disci-
plinary workforce. NASA’s success is built on high-performing teams that are committed to continuous learning,
trust, and openness to innovation and new ideas.
• Integrity: NASA is committed to maintaining an environment of trust built upon honesty, ethical behavior,
respect, and candor. Building trust through ethical conduct as individuals and as an organization is a necessary
component of mission success.
• Mission Success: NASA’s purpose is to carry out space exploration, scientific discovery, and aeronautics
research on behalf of the Nation. Every NASA employee believes that mission success is the natural conse-
quence of an uncompromising commitment to technical excellence, safety, teamwork, and integrity.

NASA’s Organization
NASA is comprised of NASA Headquarters in Washington, D.C., nine Centers located around the country, and the
Jet Propulsion Laboratory, a Federally Funded Research and Development Center operated under a contract with
the California Institute of Technology. In addition, NASA partners with academia, the private sector, state and local
governments, other federal agencies, and a number of international organizations to create an extended NASA fam-
ily of civil servants, allied partners, and stakeholders. Together, this skilled, diverse group of scientists, engineers,
managers, and support personnel share the Mission, Vision, and Values that are NASA.

NASA Headquarters
To achieve NASA’s Mission and the Vision for Space Exploration, NASA Headquarters is organized into four Mission
Directorates:
• The Aeronautics Research Mission Directorate conducts fundamental research in aeronautical disciplines
and develops capabilities, tools, and technologies that will enhance significantly aircraft performance, envi-
ronmental compatibility, and safety, as well as the capacity, flexibility, and safety of the future air transportation
system.
• The Science Mission Directorate conducts the scientific exploration of Earth, the Sun, the rest of the solar
system, and the universe. Large, strategic missions are complemented by smaller, Principal Investigator-led
missions, including ground-, air-, and space-based observatories, deep-space automated spacecraft, and plan-
etary orbiters, landers, and surface rovers. This Directorate also develops increasingly refined instrumentation,
spacecraft, and robotic techniques in pursuit of NASA’s science goals.
• The Exploration Systems Mission Directorate develops systems and supports research and technology
development to enable sustained and affordable human and robotic space exploration. This Directorate will
develop the robotic precursor missions, human transportation elements, and life support systems for the near-
term goal of lunar exploration.
• The Space Operations Mission Directorate directs spaceflight operations, space launches, and space com-
munications and manages the operation of integrated systems in low Earth orbit and beyond, including the
International Space Station. This Directorate also is laying the foundation for future missions to the Moon and
Mars by using the International Space Station as an orbital outpost where astronauts can gather vital information
that will enable safer and more capable systems for human explorers.

4 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Mission, Vision, Values, & Organization

Chief Safety & Mission Office of the Administrator Chief of Staff


Assurance Officer
Administrator
Program Analysis
Deputy Administrator Inspector General
& Evaluation
Associate Administrator
Chief Engineer NASA Advisory Groups

Mission Directorates Mission Support Offices


Aeronautics Research Chief Financial Officer

Exploration Systems Chief Information Officer

Science General Counsel

Space Operations Integrated Enterprise


Management Program

NASA Centers Innovative Partnership Program

Ames Research Center Security & Program Protection

Dryden Flight Research Center Chief Health & Medical Officer

Glenn Research Center Institutions & Management


NASA Shared Services Center
Goddard Space Flight Center Human Capital Management
Infrastructure & Administration
Jet Propulsion Laboratory Diversity & Equal Opportunity
Procurement
Johnson Space Center Small & Disadvantaged Business
Utilization
Kennedy Space Center Strategic Communications
Langley Research Center Communication Planning
Education
Marshall Space Flight Center External Relations
Legislative Affairs
Stennis Space Center Public Affairs

Functional support for NASA initiatives comes from the Agency’s Mission Support Offices. These offices focus on
reducing risks to missions by implementing efficient management operations Agency-wide: adopting standard
business and management tools to improve the effectiveness of cross-Agency operations; implementing innova-
tive practices in human capital management that encourage increased teamwork, Agency-wide perspectives, and
capability development; and reducing long-term operations costs by decreasing environmental liability costs.

Building Healthy NASA Centers


All NASA Centers support the Agency’s space exploration objectives, scientific initiatives, and aeronautics research
in addition to fulfilling their traditional responsibilities. Each Center is sized and staffed to meet its unique needs
and to ensure that the skills and abilities of every employee are used fully. Each Center pursues ways to conserve
resources and improve processes and procedures in ways that serve the Center’s needs while contributing to

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 5


achieving NASA’s Mission. And, all Centers must undertake initiatives to demonstrate the attributes of strong,
healthy, productive Centers identified by NASA’s Strategic Management Council:
• Clear, stable, and enduring roles and responsibilities;
• Clear program/project management leadership roles;
• Major in-house, durable spaceflight responsibility;
• Skilled, flexible, blended workforce with sufficient depth and breadth to meet NASA’s challenges;
• Technically competent and value-centered leadership;
• Capable and effectively utilized infrastructure; and
• Strong stakeholder support.

6 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Measuring NASA’s
Performance

Establishing Government Performance and Results Act (GPRA)


Performance Measures
In February, NASA issued the 2006 NASA Strategic Plan reflecting the Agency’s focus on achieving the Vision
for Space Exploration through six Strategic Goals. At the same time, NASA updated the Agency’s FY 2006
Performance Plan to include multi-year and annual performance metrics that NASA is pursuing in support of the
new Strategic Goals.

The resulting FY 2006 Performance Plan Update also demonstrated the latest efforts toward improving the
Agency’s performance measurement process. NASA reduced the number of multi-year Outcomes from 78 to 37
and, by eliminating redundancies, cut the number of Annual Performance Goals (APGs) from 210 to 165. NASA
also began revising the Agency’s multi-year Outcomes and APGs to make them more measurable and traceable
over given periods of performance and to ensure that they provide relevant and useful performance information to
NASA’s decision-makers, the White House, Congress, and other stakeholders.

NASA, like all research and development agencies, faces challenges in measuring and reporting annual perfor-
mance progress against long-term Strategic Goals. NASA’s space exploration, science, and aeronautics focus
often yields unpredictable discoveries or technological breakthroughs that can enhance or impede progress in the
short-term and impact the Agency’s long-term goals. In fact, NASA may appear to take a step back in perfor-
mance progress one year only to make greater progress the following year. NASA will continue to work toward
improved performance measurements and reports in subsequent years should show increasing improvement.

Rating NASA’s Performance


NASA managers calculate annually Outcome and APG performance ratings based on a number of factors, includ-
ing internal and external assessments. Internally, program managers, analysts from the Office of Program Analysis
and Evaluation, and review committees monitor and analyze each program’s adherence to budgets, schedules,
and key milestones. External advisors, like the NASA Advisory Council, the National Research Council, and the
Aerospace Safety Advisory Panel, assess program content and direction. Also, experts from the science commu-
nity, coordinated by the Science Mission Directorate, review NASA’s progress toward meeting performance metrics
under Strategic Goal 3 (Sub-goals 3A through 3D). After weighing the input from all these reviews, NASA program
managers determine a program’s progress toward achieving its multi-year and annual performance metrics.

In FY 2006, as part of NASA’s commitment to improving the Agency’s performance measurement and evalua-
tion system, NASA analysts created PARWeb to simplify the process of collecting performance data. PARWeb
provides a centralized, Web-based location for all performance ratings, narrative descriptions of performance prog-
ress and challenges, explanations of performance shortfalls, and source data to support assigned ratings. PARWeb
also lays the foundation for improving NASA’s ability to track historical trends for multi-year Outcomes and APGs.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 7


NASA rates performance as follows:

Multi-year Outcome Rating Scale


Green NASA achieved most APGs under this Outcome and is on-track to achieve or exceed this Outcome.
Yellow NASA made significant progress toward this Outcome, however, the Agency may not achieve this Outcome as stated.
Red NASA failed to achieve most of the APGs under this Outcome and does not expect to achieve this Outcome as stated.
This Outcome was canceled by management directive or is no longer applicable based on management changes to
White
the APGs.

APG Rating Scale


Green NASA achieved this APG.
Yellow NASA failed to achieve this APG, but made significant progress and anticipates achieving it during the next fiscal year.
Red NASA failed to achieve this APG, and does not anticipate completing it within the next fiscal year.
White This APG was canceled by management directive, and NASA is no longer pursuing activities relevant to this APG.

In FY 2006, NASA achieved 84 percent of the Agency’s 37 multi-year Outcomes, as shown in the Figure 1. NASA
also achieved 70 percent of the Agency’s 165 APGs. NASA rated 12 percent of the Agency’s APGs Yellow and 18
percent either Red or White. In previous years, NASA rated performance that exceeded expectations and mea-
sures Blue; however, NASA discontinued this rating as of FY 2006. (See Figure 2 for a summary of NASA’s APG
ratings for FY 2006.)

Figure 1: Summary of NASA’s FY 2006 Multi-year Outcome Ratings


100%

2
80%

1 1 3 4 3 3 3 2 2 4 3
60%

5
40%

20% 1

0%
1 2 3A 3B 3C 3D 3E 3F 4 5 6 CASP

Strategic Goal and Sub-goals


CASP = Cross-Agency Support Programs

8 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Measuring NASA’s Performance

Figure 2: Summary of NASA’s FY 2006 APG Ratings


100%
1 1 1 2 1
2 1
1 1 4 2 6 2 9
80% 4

2 3 1
4
60%

1 2 6 11 18 15 17 4 2 8 8 21
40%

20%

0%
1 2 3A 3B 3C 3D 3E 3F 4 5 6 CASP EM
Strategic Goals and Sub-goals
CASP = Cross-Agency Support Programs
EM = Efficiency Measures

Figure 3 shows an estimate of NASA’s FY 2006 cost of performance for each Strategic Goal and Sub-goal.
NASA’s financial structure is not based on the Strategic Goals; it is based on lines of business that reflect the costs
associated with the Agency’s Mission Directorate and Mission Support programs. To derive the cost of perfor-
mance, NASA analysts reviewed and assigned each Agency program to a Strategic Goal (or Sub-goal, when
appropriate), then estimated the expenditure based on each program’s percentage of the business line reflected
in that Strategic Goal (or Sub-goal, when appropriate). This method does not allow NASA to estimate cost of
performance by multi-year Outcomes or APGs. However, NASA is making progress in aligning the Agency’s
budget and financial structure with performance, and the Agency plans to report cost of performance by multi-year
Outcomes as soon as possible.

The numbers provided below, and in Part 2, are derived from the FY 2006 Statement of Net Cost included in
Part 3: Financials.
Figure 3: FY 2006 Cost of Performance for NASA’s Strategic Goals and Sub-goals

6,000
5,416.12

5,000

4,000
$ Millions

3,000

1,948.93
2,006.44 1,910.95
2,000
1,636.36 1,622.16

974.71 1,050.00
1,000
665.26
367.07
44.00
0
1 2 3A 3B 3C 3D 3E 3F 4 5 6
Strategic Goals and Sub-goals

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 9


The “scorecard” below shows NASA’s FY 2006 progress toward achieving the Agency’s 37 multi-year Out-
comes. Detailed information about FY 2006 performance, including ratings for APGs, rating trends, and NASA’s
Performance Improvement Plan, are included in Part 2: Detailed Performance Data.

FY 2006
FY 2006 NASA Performance Metrics Rating
Strategic Goal 1: Fly the Shuttle as safely as possible until its retirement, not later than 2010.
1.1 Assure the safety and integrity of the Space Shuttle workforce, systems and processes, while flying the
Yellow
manifest.
Strategic Goal 2: Complete the International Space Station in a manner consistent with NASA’s International Partner
commitments and the needs of human exploration.
2.1 By 2010, complete assembly of the U.S. On-orbit segment; launch International Partner elements and
sparing items required to be launched by the Shuttle; and provide on-orbit resources for research to Green
support U.S. human space exploration.
Strategic Goal 3: Develop a balanced overall program of science, exploration, and aeronautics consistent with the
redirection of the human spaceflight program to focus on exploration.
Sub-goal 3A: Study Earth from space to advance scientific understanding and meet societal needs.
3A.1 Progress in understanding and improving predictive capability for changes in the ozone layer, climate
Green
forcing, and air quality associated with changes in atmospheric composition.
3A.2 Progress in enabling improved predictive capability for weather and extreme weather events. Green
3A.3 Progress in quantifying global land cover change and terrestrial and marine productivity, and in improving
Green
carbon cycle and ecosystem models.
3A.4 Progress in quantifying the key reservoirs and fluxes in the global water cycle and in improving models of
Yellow
water cycle change and fresh water availability.
3A.5 Progress in understanding the role of oceans, atmosphere, and ice in the climate system and in improving
Yellow
predictive capability for its future evolution.
3A.6 Progress in characterizing and understanding Earth surface changes and variability of Earth’s gravitational
Green
and magnetic fields.
3A.7 Progress in expanding and accelerating the realization of societal benefits from Earth system science. Green
Sub-goal 3B: Understand the Sun and its effects on Earth and the solar system.
3B.1 Progress in understanding the fundamental physical processes of the space environment from the Sun to
Green
Earth, to other planets, and beyond to the interstellar medium.
3B.2 Progress in understanding how human society, technological systems, and the habitability of planets are
Green
affected by solar variability and planetary magnetic fields.
3B.3 Progress in developing the capability to predict the extreme and dynamic conditions in space in order to
Green
maximize the safety and productivity of human and robotic explorers.
Sub-goal 3C: Advance scientific knowledge of the solar system, search for evidence of life, and prepare for human
exploration.
3C.1 Progress in learning how the Sun’s family of planets and minor bodies originated and evolved. Green
3C.2 Progress in understanding the processes that determine the history and future of habitability in the solar
system, including the origin and evolution of Earth’s biosphere and the character and extent of prebiotic Green
chemistry on Mars and other worlds.
3C.3 Progress in identifying and investigating past or present habitable environments on Mars and other worlds,
Green
and determining if there is or ever has been life elsewhere in the solar system.
3C.4 Progress in exploring the space environment to discover potential hazards to humans and to search for
Green
resources that would enable human presence.
Sub-goal 3D: Discover the origin, structure, evolution, and destiny of the universe, and search for Earth-like planets.
3D.1 Progress in understanding the origin and destiny of the universe, phenomena near black holes, and the
Green
nature of gravity.

10 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Measuring NASA’s Performance

FY 2006
FY 2006 NASA Performance Metrics Rating
3D.2 Progress in understanding how the first stars and galaxies formed, and how they changed over time into
Yellow
the objects recognized in the present universe.
3D.3 Progress in understanding how individual stars form and how those processes ultimately affect the
Yellow
formation of planetary systems.
3D.4 Progress in creating a census of extra-solar planets and measuring their properties. Yellow
Sub-goal 3E: Advance knowledge in the fundamental disciplines of aeronautics, and develop technologies for safer aircraft
and higher capacity airspace systems.
3E.1 By 2016, identify and develop tools, methods, and technologies for improving overall aircraft safety of new
and legacy vehicles operating in the Next Generation Air Transportation System (projected for the year Green
2025).
3E.2 By 2016, develop and demonstrate future concepts, capabilities, and technologies that will enable major
increases in air traffic management effectiveness, flexibility, and efficiency, while maintaining safety, to meet Green
capacity and mobility requirements of the Next Generation Air Transportation System.
3E.3 By 2016, develop multidisciplinary design, analysis, and optimization capabilities for use in trade studies
of new technologies, enabling better quantification of vehicle performance in all flight regimes and within a Green
variety of transportation system architectures.
Sub-goal 3F: Understand the effects of the space environment on human performance, and test new technologies and
countermeasures for long-duration human space exploration.
3F.1 By 2008, develop and test candidate countermeasures to ensure the health of humans traveling in space. Green
3F.2 By 2010, identify and test technologies to reduce total mission resource requirements for life support
Green
systems.
3F.3 By 2010, develop reliable spacecraft technologies for advanced environmental monitoring and control and
Green
fire safety.
Strategic Goal 4: Bring a new Crew Exploration Vehicle into service as soon as possible after Shuttle retirement.
4.1 No later than 2014, and as early as 2010, transport three crewmembers to the International Space Station
and return them safely to Earth, demonstrating an operational capability to support human exploration Green
missions.
4.2 No later than 2014, and as early as 2010, develop and deploy a new space suit to support exploration, that
Green
will be used in the initial operating capability of the Crew Exploration Vehicle.
Strategic Goal 5: Encourage the pursuit of appropriate partnerships with the emerging commercial space sector.
5.1 Develop and demonstrate a means for NASA to purchase launch services from emerging launch providers. Green
5.2 By 2010, demonstrate one or more commercial space services for ISS cargo and/or crew transport. Green
Strategic Goal 6: Establish a lunar return program having the maximum possible utility for later missions to Mars and
other destinations.
6.1 By 2008, launch a Lunar Reconnaissance Orbiter (LRO) that will provide information about potential human
Green
exploration sites.
6.2 By 2012, develop and test technologies for in-situ resource utilization, power generation, and autonomous
Green
systems that reduce consumables launched from Earth and moderate mission risk.
6.3 By 2010, identify and conduct long-term research necessary to develop nuclear technologies essential to
Green
support human-robotic lunar missions and that are extensible to exploration of Mars.
6.4 Implement the space communications and navigation architecture responsive to Science and Exploration
Green
mission requirements.
Cross-Agency Support Programs
Education
ED-1 Contribute to the development of the STEM workforce in disciplines needed to achieve NASA’s strategic
Green
goals through a portfolio of programs.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 11


FY 2006
FY 2006 NASA Performance Metrics Rating
Advanced Business Systems (Integrated Enterprise Management Program)
IEM-2 Increase efficiency by implementing new business systems and reengineering Agency business processes. Green
Innovative Partnerships Program
IPP-1 Promote and develop innovative technology partnerships among NASA, U.S. industry, and other sectors
Green
for the benefit of Agency programs and projects.

Program Assessment Rating Tool (PART)


OMB developed the PART in 2002 to assess federal agency programs and projects and to identify their strengths
and weaknesses. OMB evaluates NASA’s programs through PART in a three-year cycle, assessing approximately
one-third of the Agency’s budget areas, or Themes, each year. In FY 2006, OMB assessed three Themes:
• Solar System Exploration received an “Effective” rating (the highest rating possible) for setting ambitious goals,
achieving results, and being well managed and efficient;
• Constellation Systems received an “Adequate” rating for a major program management deficiency related to
Agency-wide problems with integrating NASA’s new systems for financial and administrative management and
due to the relative newness of the program and the limited baselines for comparison and evaluation; and
• The Integrated Enterprise Management Program received a “Moderately Effective” rating for setting ambitious
goals. However, the program still needs to revise some of the accountability processes to ensure consistent
program effectiveness.
NASA tracks and implements a series of follow-on actions designed to improve program performance based on
current and past PART assessments. Part 2: Detailed Performance Data includes detailed PART ratings by pro-
gram assessment areas. Appendix C contains NASA’s follow-up actions to Themes reviewed in FY 2005. OMB’s
recommendations for the FY 2006 assessments were not available for inclusion in the FY 2006 Performance and
Accountability Report.

President’s Management Agenda (PMA)


While GPRA and PART focus on Agency and program performance, the President’s Management Agenda (PMA)
commits the Executive Branch of the federal government to a series of reforms to improve efficiencies and effective-
ness in the management of federal programs. PMA focuses on individual agency performance in six government-
wide management areas: Human Capital, Competitive Sourcing, Improving Financial Performance, E-Government,
Budget and Performance Integration, and Real Property Asset Management. OMB oversees the PMA efforts,
negotiates performance goals with each agency, and rates agency performance quarterly. The PMA scores from
each agency are rolled up into an Executive Branch Management Scorecard that tracks government-wide status
and progress in all PMA focus areas.

The table below shows NASA’s PMA status and progress for FY 2006 and the three previous fiscal years.

12 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Measuring NASA’s Performance

NASA’s PMA Scorecard


FY 2006 FY 2005 FY 2004 FY 2003
Human Capital
Status Green Green Green Yellow
Progress Green Yellow Green Green
Competitive Sourcing
Status Green Green Yellow Red
Progress Green Green Green Green
Improving Financial Performance
Status Red Red Red Red
Progress Yellow Red Red Green
E-Government
Status Red Yellow Green Red
Progress Red Yellow Green Green
Budget and Performance Integration
Status Green Green Green Yellow
Progress Green Yellow Green Green
Real Property Asset Management
Status Green Yellow Red n/a
Progress Yellow Green Yellow n/a

Major Program Annual Reports


The NASA Authorization Act of 2005 mandates that NASA submit Major Program Annual Reports with the
Agency’s fiscal year budget request. Each Major Program Annual Reports begins with a baseline report for every
new major program or project, the program or project’s purpose, key technical parameters to fulfill that purpose,
key milestones, lifecycle cost commitment, estimated development costs, and risks to the program or project.

In FY 2006, as part of the FY 2007 Budget Estimates, NASA provided baseline reports for the following programs
and projects:
• Integrated Enterprise Management Program: Core Financial project, including the follow-on SAP Version
Update effort to improve the Agency’s SAP Core Financial software;
• Science Mission Directorate: Dawn, the Gamma-ray Large Area Space Telescope (GLAST), Herschel,
Hubble Space Telescope Servicing Mission 4, Kepler, Mars Phoenix, the National Polar-orbiting Operational
Environmental Satellite System (NPOESS) Preparation Project, Solar Dynamics Observatory (SDO), and the
Solar Terrestrial Relations Observatory (STEREO); and
• Space Operations Mission Directorate: International Space Station.
NASA will monitor identified baseline cost and key milestones to assure that each program/project does not exceed
the estimated cost by 15 percent and/or does not miss a key milestone by more than six months. If either of these
thresholds is exceeded, NASA will update Congress with the reasons and the impacts of the cost growth or the
schedule delay.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 13


14 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Performance Overview

Progress Toward Achieving NASA’s Strategic Goals


A Guide to Performance Overviews
The following Performance Overviews describe NASA’s Strategic Goals and Sub-goals. The discussions include
performance achievement highlights and challenges in FY 2006.

Introduction and Reaping Benefits


The introduction provides a general overview of the Strategic Goal or Sub-goal and explains NASA’s rationale for
pursuing each. The benefits section discusses how each Strategic Goal or Sub-goal serves the public, the Nation,
the Vision for Space Exploration, and NASA’s Mission.

In the upper right corner is a box displaying the cost of performance for the Strategic Goal or Sub-goal and
the responsible Mission Directorate. (Note: The cost of performance is an estimate based on NASA’s FY 2006
Statement of Net Cost included in Part 3: Financials. This estimate does not include cost obligations deferred
to subsequent fiscal years. A description of how NASA obtains the cost of performance is included in Measuring
NASA’s Performance.)

Highlighting Achievements
This section highlights the top performance successes during the fiscal year. It also identifies management issues,
such as reorganizations, that enabled the Agency to achieve these successes.

Confronting Challenges
This section highlights the major challenges NASA faced during FY 2006 and plans to mitigate or overcome the
challenges.

Moving Forward
This section describes activities planned for the next few years that will contribute to the successful achievement
of each Strategic Goal or Sub-goal. It also addresses the obstacles that NASA may have to overcome in the near
future to achieve the Vision.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 15


Strategic Goal 1: Fly the Shuttle as safely as possible
Cost of Performance
until its retirement, not later than 2010. (in millions)
The Space Shuttle has supported NASA’s Mission for over 25 years, car- $5,416.12
rying crews and cargo to low Earth orbit, performing repair, recovery, and
maintenance missions on orbiting satellites, providing a platform for conduct- Responsible
ing science experiments, and supporting construction of the International Mission Directorate
Space Station (ISS). NASA will retire the Shuttle fleet by 2010. Until then, the Space Operations
Agency will demonstrate NASA’s most critical value—safety—by promoting
engineering excellence, maintaining realistic flight schedules, and fostering
internal forums where mission risks and benefits can be discussed and analyzed freely.

Reaping Benefits
The Shuttle is recognized around the world as a symbol of America’s space program and the Nation’s commitment
to space exploration. NASA’s Space Shuttle Program, and the Shuttle itself, have inspired generations of school-
children to pursue dreams and careers in science, technology, engineering, and mathematics. The Space Shuttle
Program also provides direct benefits to the Nation by advancing national security and economic interests in space
and spurring technology development in critical areas such as navigation, computing, materials, and communica-
tions. Furthermore, due to its heavy-lift capacity, the Shuttle is the only vehicle capable of completing assembly
of the ISS in a manner consistent with NASA’s international partnership commitments and exploration research
needs. The remaining Shuttle flights will be dedicated to ISS construction and a Hubble Space Telescope service
mission.

A primary public benefit of retiring the Shuttle is to redirect resources toward new programs, such as the Orion
Crew Exploration Vehicle and the Ares launch vehicles, needed to carry out the Vision. NASA will use the knowl-
edge and assets developed over nearly three decades of Shuttle operations to build a new generation of vehicles
designed for missions beyond low Earth orbit. When NASA retires the Shuttle, the Agency will direct Shuttle per-
sonnel, assets, and knowledge toward the development and support of new hardware and technologies necessary
to achieve the Vision. For the American public, this means continuity in our access to space and sustained U.S.
leadership in technology development and civilian space exploration.

Highlighting Achievements
The most significant activities in FY 2006 for Strategic Goal 1 were the successful flights of STS-121 and
STS-115:
• NASA celebrated Independence Day 2006 by launching Shuttle Discovery (STS-121), the first launch NASA
ever conducted on the July 4 holiday. The second of two test flights (which include STS-114 in July 2005),
STS-121 validated the improvements NASA made to the Shuttle system since the loss of Columbia in 2003.
During the mission, Discovery crewmembers conducted a series of hardware and procedural tests and deliv-
ered several tons of supplies to the ISS. The mission also delivered Flight Engineer Thomas Reiter to the ISS,
returning the ISS crew size to three members.

United Space Alliance technician Erin Schlichenmaier uses a flashlight to


inspect tile repair on Discovery’s underside in November 2005. In prepara-
tion for STS-121, technicians replaced older Shuttle tiles around the main
landing gear doors, external tank doors, and nose landing gear doors with a
new type of tile called BRI-18. The new tiles are more impact resistant than
previous designs. Technicians also developed a new procedure to ensure
that gap fillers, which fill the tiny gaps between tiles, do not protrude and
pose a hazard during the Shuttle’s re-entry into Earth’s atmosphere. During
the STS-114 mission in 2005, a crewmember conducted a spacewalk to
remove a protruding piece of gap filler spotted on Discovery’s underside.
(NASA)

16 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

• Atlantis (STS-115) launched on September 9, marked a return to sustained Shuttle operations, placing NASA
on track to complete assembly of the ISS by Shuttle retirement in 2010. Atlantis delivered to the ISS the P3/P4
truss, which will provide a quarter of the power, data, and communications services needed to operate the
completed ISS. During the mission, Atlantis crewmembers conducted spacewalks—the most complex ever
conducted—to attach the truss and the Solar Alpha Rotary Joint, a wagon wheel-shaped joint that allows the
solar arrays attached to the truss to turn toward the Sun.

Confronting Challenges
The Space Shuttle Program faces two main challenges. First, NASA must maintain the skilled workforce and criti-
cal assets needed to safely complete the Shuttle manifest. Second, NASA must manage the process of identifying,
transitioning, and dispositioning the resources that support the Shuttle in anticipation of the Shuttle’s retirement.

The Shuttle transition and phase-out effort will be complex and challenging, especially since it will happen at the
same time as the Shuttle is set to carry out the most complicated sequence of flights ever attempted. Over the
next four years, the Shuttle will carry tons of hardware to the ISS, where astronauts and cosmonauts will conduct
nearly 80 spacewalks to assemble, check out, and maintain the orbiting facility. NASA also plans to conduct a fifth
servicing mission to the Hubble Space Telescope to repair critical subsystems and improve Hubble’s astronomical
instruments.

The Space Shuttle Program occupies 640 facilities and uses


over 900,000 pieces of equipment. The total equipment
value is over $12 billion, located in hundreds of government
and contractor facilities across the United States. The total
facilities value is approximately $5.7 billion, which accounts
for approximately one-fourth of the value of the Agency’s
total facility inventory. NASA currently has more than 1,500
active suppliers and 3,000 to 4,000 qualified suppliers located
throughout the country. Retiring these assets and facilities
or transitioning them to new human exploration efforts is a
formidable challenge. NASA must leverage strategically the
existing human spaceflight workforce, hardware, and
infrastructure to ensure safe Shuttle missions while simultane- In March 2006, NASA engineers tested a three-
ously preparing to meet future needs. NASA uses a number percent-size model of the Space Shuttle at Ames
of working groups and control boards to monitor and control Research Center’s Unitary Wind Tunnel Complex to
help decide whether they should remove the Shuttle’s
the transition process, including the Transition Control Board, protuberance air load (PAL) ramps from the external
the Joint Integration Control Board, and the Headquarters tank for the STS-121 launch. During the launch of
Transition Working Group. The Space Shuttle Program man- STS-114 in July 2005, a large piece of insulation
ager executes risk management responsibilities through the foam fell from the PAL ramp area. The results of
commit-to-flight process, the Shuttle Engineering Review the wind tunnel tests indicated that the Shuttle team
Board, and Regular Program Requirements Control Board. could remove the PAL ramps, leaving in place the
smaller ice–frost ramps, and proceed with the launch
These boards and processes are designed to manage and as planned. (NASA)
reduce the risks associated with both flying the Shuttle and
transitioning from Shuttle to other exploration vehicles.

Moving Forward
NASA plans to assemble the ISS using the minimum number of Shuttle flights necessary to complete assembly and
ensure a safe transition to new capabilities. The Agency also will conduct a fifth servicing mission to the Hubble
Space Telescope. At the same time, NASA will phase out the Shuttle and ensure a smooth transition of the work-
force and critical assets to new requirements.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 17


Strategic Goal 2: Complete the International Space
Cost of Performance
Station in a manner consistent with NASA’s Internation- (in millions)
al Partner commitments and the needs of human $2,006.44
exploration. Responsible
Built and operated using state of the art science and technology, the Interna- Mission Directorate
tional Space Station (ISS) is a vital part of NASA’s program of exploration. The Space Operations
ISS provides an environment for developing, testing, and validating the next
generation of technologies and processes needed to support the Nation’s
exploration program and achievement of the Vision for Space Exploration.

Reaping Benefits
The ISS is a testbed for exploration technologies and processes. Its equipment and location provide a one-of-a-
kind platform for Earth observations, microgravity research, and investigations of the long-term effects of the space
environment on human beings. The ISS also enables research in fundamental physics and biology, materials
sciences, and medicine. Crewmembers test processes for repairing equipment in microgravity, conducting space-
walks, and keeping systems operational over long periods of time—capabilities critical to future missions.

When completed, the ISS will be the largest crewed spacecraft ever built. Many nations provide the resources and
technologies that keep the ISS flying, and these international partnerships have increased cooperation and goodwill
among participating nations.

Highlighting Achievements
On November 2, 2005, Expedition 12 Commander William
McArthur and Flight Engineer Valery Tokarev, both of whom had
been aboard the ISS since October 10, 2005, celebrated five years
of continuous human presence in low Earth orbit aboard the ISS.
Throughout their stay, the Expedition 12 crew focused primarily
on ISS operations and maintenance tasks. They also conducted
individual experiments, adding to the more than 4,000 hours of
research time conducted by past expeditions. Projects in FY 2006
included the following:
• As part of Education Payload Operations, the crew video-
taped themselves conducting activities in the near-weightless
environment of the ISS to demonstrate science, technology,
engineering, mathematics, and geography principles to grade- Astronaut Jeffrey Williams, Expedition 13 NASA
school students. science officer, checks the Beacon/Beacon Tes-
ter for the Synchronized Position Hold, Engage,
• In February 2006, McArthur and Tokarev released into orbit
Reorient, Experimental Satellites (SPHERES) on
an old Russian Orlan spacesuit outfitted with a special radio August 19, 2006. SPHERES, which uses robotic
transmitter and other gear as part of a Russian experiment mini-satellites, tests the basics of formation flight
called SuitSat. The spacesuit flew free from the ISS like a and autonomous docking that should be use-
satellite in orbit for several weeks of scientific research and ful in future multiple spacecraft formation flying.
communications tracking by amateur radio operators. The first satellite arrived at the ISS by Progress
spacecraft in April 2006, and STS-121 delivered
• McArthur conducted experiments for the Protein Crystal the second, blue satellite. A third, yellow satellite
Growth Monitoring by Digital Holographic Microscope, or will launch on STS-116. Although the SPHERES
PromISS, using the Microgravity Science Glovebox. This satellites have been tested on Earth, 2006 marks
the first tests in space. (NASA)

18 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

experiment used a holographic microscope to study how the


near-weightless environment aboard the ISS affects protein
crystal growth to help scientists better understand the role of
proteins in diseases.
• The STS-121 mission in July 2006 delivered the oxygen gen-
eration system rack, which is part of the regenerative envi-
ronmental control and life support system. This rack eventu-
ally will allow the ISS to accommodate six crewmembers and
will help NASA develop and validate life support technology
for use during long-duration human space missions. Shuttle
astronauts Michael Fossum and Piers Sellers repaired the ISS’s
mobile transporter rail car, which allows the remote manipula- On September 12, 2006, STS-115 astro-
tor arm, or Canadarm-2, to move along the ISS’s truss ele- nauts Joseph Tanner (left) and Heidemarie
ments, extending the arm’s reach so that it can aid future ISS Stefanyshyn-Piper conduct the first of three
spacewalks to attach the P3/P4 truss to the
construction. During another extravehicular activity, the two International Space Station. (NASA)
astronauts attached a spare pump module that helps transport
liquid ammonia through the ISS’s cooling system. STS-121
also delivered Flight Engineer Thomas Reiter, returning the ISS
crew complement to three members.
• In September, STS-115 crewmembers attached the newly delivered P3/P4 truss, doubling the ISS’s power and
capability. The P3/P4 truss includes the new Solar Alpha Rotary Joint. This joint, combined with the gimbal
assemblies on the solar arrays, allows the massive solar arrays to remain pointed toward the Sun as the ISS
orbits. These and other additions to be delivered on future missions prepare the ISS to receive new modules,
including International Partner modules, and to accommodate larger crews.

Confronting Challenges
The important role that the Space Shuttle plays in the construction and maintenance of the ISS means that the
successful completion of ISS assembly is dependent on the Space Shuttle Program. Each Shuttle mission is criti-
cal to the completion of ISS. NASA developed Shuttle schedules and manifests to assure that each Shuttle flight
is maximized. The Space Operations Mission Directorate also is seeking alternate transportation options for crew
and cargo to relieve the burden placed on the Shuttle.

NASA enjoys the benefits of partnerships with the other nations contributing to the ISS. These partnerships
enhance the Agency’s ability to achieve NASA’s Strategic Goals while also benefiting partner nations. However,
international space agency partnerships do not exist in a vacuum, and there are multiple risks involved in these
partnerships. NASA’s ability to maintain international partnerships even as world conditions and international rela-
tionships change is important to the success of the ISS.

Moving Forward
The resumption of Shuttle flights will allow NASA to complete construction of the ISS, increase the crewmember
size, and demonstrate the advanced capabilities of the regenerative environmental control and life support system.
The return to planned ISS activities also helps NASA achieve on schedule important research milestones for human
health and life support. The NASA Authorization Act of 2005 designated the ISS as a National Laboratory. NASA
currently is developing the plan required by Congress that will describe the implementation of National Laboratory
status for the ISS.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 19


Goal 3: Develop a balanced overall program of science, exploration, and
aeronautics consistent with the redirection of the human spaceflight program
to focus on exploration.
Strategic Goal 3 encompasses all basic research programs that enable, and are enabled by, NASA’s exploration
activities. To ensure a balanced focus that addresses and achieves all objectives of the Vision for Space Explora-
tion and NASA’s Mission, the Agency established six Sub-goals supporting Goal 3:
• Sub-goal 3A: Study Earth from space to advance scientific understanding and meet societal needs.
• Sub-goal 3B: Understand the Sun and its effects on Earth and the solar system.
• Sub-goal 3C: Advance scientific knowledge of the solar system, search for evidence of life, and prepare for
human exploration.
• Sub-goal 3D: Discover the origin, structure, evolution, and destiny of the universe, and search for Earth-like
planets.
• Sub-goal 3E: Advance knowledge in the fundamental disciplines of aeronautics, and develop technologies for
safer aircraft and higher capacity airspace systems.
• Sub-goal 3F: Understand the effects of the space environment on human performance, and test new tech-
nologies and countermeasures for long-duration human space exploration.
All four Mission Directorates contribute to these Sub-goals.

Highlighting Achievements
NASA made excellent progress toward achieving Strategic Goal 3 during FY 2006. The Science Mission Director-
ate, which manages work under Sub-goals 3A through 3D, celebrated many achievements, including the success-
ful completion of several missions: Stardust, which returned samples from comet Wild 2; Gravity Probe–B (GPB),
which tested Einstein’s theory of general relativity; and the Topography Experiment for Ocean Circulation (TOPEX)/
Poseidon mission, which revolutionized the way scientists study Earth’s oceans. In July, NASA returned the Inter-
national Space Station crew size to three members and the Shuttle returned to regular operations in September,
increasing flight research opportunities in human health and performance and fundamental physics and biology.
The Aeronautics Research Mission Directorate conducted a major reorganization that aligned its programs with
NASA’s new priorities. Exploration Systems, Science, and Space Operations also streamlined their organizations
to strengthen and enhance programmatic coordination, direction, and accountability.

Confronting Challenges
Achieving Sub-goals 3A through 3F will demand that NASA confront unique challenges specific to each Sub-goal.
However, NASA also faces some over-arching challenges that impinge on more than one Sub-goal. For example,
the Science Mission Directorate must predict technology development and mission implementation life-cycle costs
that are key to estimating budget needs across the life of a project. This challenge is apparent in large, flagship
missions, as well as in medium and small missions. The Science Mission Directorate also is challenged by the need
to maximize the science return for each mission while maintaining an acceptable level of implementation risk and
meeting cost and schedule objectives.

The challenge of maximizing science while maintaining cost and schedule objectives is exacerbated by the need
to develop one-of-a-kind spacecraft that require cutting-edge technologies and engineering processes. Because
NASA and Agency partners are doing something for the first time, costs are rarely fully predictable. A key obstacle
in achieving program success is being able to mature the required technologies early enough in the life of the mis-
sion to keep the life-cycle costs reasonable and predictable. If NASA and Agency partners take too long to tackle
the technology challenges, schedule delays will occur later in the mission when delays are even more costly.

The Agency constantly strives to do a better job of predicting accurately total lifecycle costs. In order to do
this, NASA aims to have enough reserves, while conserving resources, at mission confirmation. In addition, the

20 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

Science Mission Directorate is conducting studies to analyze best practices from selected past missions in the
small, medium, and large mission cost categories.

Another challenge confronting NASA’s Science missions is the future availability and cost of launch services. As
retirement looms for medium-class expendable launch vehicles like the Delta II, expendable launch vehicles are
evolving toward larger, more expensive launchers like the Delta 4 and Atlas 5. These larger launchers provide
advantages in lift capabilities for larger payloads, but are more expensive per pound of payload for small- and
medium-sized payloads, since NASA would be paying for unneeded lift capabilities.

In addition, technical issues associated with available expendable launch vehicles have led to launch delays and
additional costs for several missions. To address the challenge, NASA has undertaken a study to consider options
the Agency might pursue to strengthen the launch vehicle portfolio, including using alternate launch providers.

The following discussions of each Sub-goal include background, highlights, and challenges specific to that
Sub-goal.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 21


Sub-goal 3A: Study Earth from space to advance
Cost of Performance
scientific understanding and meet societal needs. (in millions)
Earth is a dynamic system. Its land, oceans, atmosphere, climate, and gravi- $1,636.36
tational fields are changing constantly. Some of these changes, especially
short-duration and localized phenomena like hurricanes and earthquakes, are Responsible
big and can pose hazards to humans around the world. Other changes, like Mission Directorate
climate variability, take longer to have an effect and are revealed through long- Science
term, intensive research. NASA’s Earth Science Division helps researchers
better understand the causes and consequences of these changes through
data gathered by Earth-observing satellites, aircraft, and balloons. Using advanced computer systems, program
scientists analyze and model the data into useful Earth science information and distribute it to end users around
the world.

NASA’s Earth Science Division partners with other government agencies, academia, non-profit organizations,
industry, and international organizations to share data and analyses that will help researchers better understand
and predict the effects of Earth system events, changes, and interactions. Improved understanding and predictive
ability enables end users, especially policy makers, to ameliorate harmful impacts of events and changes to the
Earth system.

Reaping Benefits
NASA’s Earth Science Division is central to three Presidential initiatives that serve the public:
• The Climate Change Research Initiative, established in 2001 to study global climate change and to provide a
forum for public debate and decision-making about how the United States monitors and responds to climate
change;
• The Global Earth Observation System of Systems, a multinational effort to coordinate existing and new Earth
observation hardware and software to supply free data and information for the benefit of humanity and the
environment; and
• The U.S. Ocean Action Plan, released in 2004 as part of an Administration effort to ensure that benefits derived
from oceans and other bodies of water will be available to future generations.
To support these initiatives, NASA and the Agency’s partners conduct vital research that helps the Nation man-
age environmental and agricultural resources and prepare for natural disasters. In the course of conducting this
research, NASA applies the resulting data and knowledge with the Agency’s operational partners to improve their
decision making in societal need areas such as public health, aviation, water management, air quality, and energy.

The Earth Science Program also helps NASA achieve the Agency’s other Strategic Goals and Mission:
• Earth observing satellites provide meteorological information used by the National Oceanic and Atmospheric
Administration (NOAA) and the Department of Defense in providing weather forecasts that help NASA plan
launches and landings. At the end of August 2006, satellites indicated that Tropical Storm Ernesto would make
landfall in Florida, giving NASA time to review the launch of Space Shuttle Atlantis and postpone it until early
September.
• The Earth Science Division develops instruments for Earth observation that, with modification, can help NASA
explore other planets. For example, instruments that study chemicals in Earth’s atmosphere can be adapted
to study the atmospheres of planets throughout the solar system.

Highlighting Achievements
Using data from the first-ever gravity survey by the twin Gravity Recovery and Climate Experiment (GRACE) satel-
lites, scientists concluded this year that the mass of the Antarctic ice sheet has decreased significantly since 2002,
providing further evidence that observed warming in polar regions is affecting ice mass. The loss, mostly from the
West Antarctic ice sheet, was enough to raise sea levels around the world by about 0.05 inches. This loss primarily

22 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

is a result of increased flow of some major outlet glaciers, which


drain the ice sheet, in response to the melting of floating ice shelves
where these outlet glaciers meet the sea. Historically, these ice
shelves have buttressed the ice and slowed its discharge.

In the past, scientists had difficulty measuring Antarctica’s ice


sheet because of its size and complexity. They combined vari-
ous measuring techniques, but the results suffered from a lack
of data in critical regions. GRACE overcomes these difficulties
by tracking minute changes in Earth’s gravity field resulting from
regional changes in the distribution of mass. In addition, NASA’s
Ice, Cloud, Elevation, and Land Satellite (ICESat) provides detailed This photo shows the calving front, or break-
information on the spatial structure and magnitude of ice sheet off point into the ocean, of the Helheim Glacier,
located in southeast Greenland. This glacier,
growth and shrinkage, providing important insight into the nature
which shows high calving activity associated
of ice changes. Together, the two missions constitute a powerful with faster glacier flow, is now one of the fastest
capability for understanding how ice sheets contribute to rising moving glaciers in the world. (NASA)
sea levels.

At the other end of the globe, ICESat, GRACE, and other missions show that ice loss has increased in the last
few years, as compared to estimates made in the 1990s obtained from satellite radar altimetry and airborne laser
surveys of ice-elevation changes. Satellite observations of Greenland indicate that melt rates have increased about
30 percent since 1979. At the same time, data from the Terra satellite and Landsat show a remarkable increase
in flow rates of some of Greenland’s major outlet glaciers, increasing the rate that ice is draining from the ice sheet
and dumping into the ocean in the form of calving icebergs. Like in Antarctica, this acceleration is largely a result of
the melting and break-up of floating ice “tongues” at the front of these glaciers. However, unlike Antarctica, which
experiences relatively little surface melt, some acceleration in Greenland results from summer surface melt water
penetrating the ice sheet and lubricating the ice/bedrock interface at the bottom of the ice sheet. Over time, the
ice sheet’s melt will contribute significantly to global sea levels. Aircraft and radar altimetry data also reveal that
the ice sheet is growing at its higher, colder interior, most likely a result of increased snowfall, much like the East
Antarctic ice sheet.

In August 2006, a study using NASA and NOAA data indicates that the decline in Earth’s protective ozone layer
outside the polar regions has not continued. The study team analyzed 25 years of ozone observations made at
different altitudes in the stratosphere (the second layer of atmosphere, which contains about 90 percent of atmo-
spheric ozone) by balloons, ground-based instruments, and five NASA/NOAA satellites. The results showed that
ozone column amounts outside of the polar regions
stopped thinning around 1997 and are remaining
approximately stable, although significant recovery
has not yet taken place. The data also showed that
the abundance of human-produced, ozone-destroy-
ing gases, such as chlorofluorocarbons, peaked
between 1993 and 1997 and is now declining.

The study team compared observation data taken


from different altitudes with computer predictions,
which combined measured variations in human-
produced, ozone-destroying chemicals with other
factors, such as sunspot activity, that can affect
ozone levels. The results indicate that the 1987 In this set of graphs, NASA/NOAA satellite data shows the rise
international Montreal Protocol, which phased out over in stratospheric chlorine (top) and a corresponding decline in
the course of more than a decade the production and ozone layer thickness from 1979 to 1997. As stratospheric
chlorine declined in response to enactment of the Montreal
use of ozone-depleting compounds, is succeeding Protocol, the rate of ozone destruction decreased to the point
in stopping further loss of ozone in the stratosphere. at which there was little or no change with time. (NASA)

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 23


However, the decline in levels of these ozone-depleting compounds in the stratosphere will be gradual, and full re-
covery of the ozone layer will take significant time. A related study carried out by NASA suggests that full recovery
of ozone over the Antarctic will not take place until approximately 2065.

Confronting Challenges
NASA delayed the CloudSat/CALIPSO joint launch several times due to technical problems with the Delta II launch
vehicle and due to a strike by personnel needed to support the launch. Such delays place added stress on
tight mission budgets and schedules. The Earth Science Division is working with the Space Operations Mission
Directorate to manage launch provider options.

Moving Forward
In the next couple of years, NASA will launch a number of advanced Earth
observation satellites:
• Measurements taken by the Orbiting Carbon Observatory (OCO),
scheduled for launch in 2008, will help researchers better understand
the human and natural processes controlling atmospheric carbon diox-
ide, a key greenhouse gas, and the roles that ocean and land ecosys-
tems play in absorbing carbon dioxide;
• The Glory mission, also scheduled for launch in 2008, will continue
measurements of solar irradiance and provide new space-based
measurements of aerosol properties that will help scientists better un-
derstand the spatial and temporal variability of aerosol properties and
the extent to which aerosols produced by natural events or human
activities affect climate variability and change;
On April 28, 2006, two Earth-
• The National Polar Orbiting Operational Earth Satellite System (NPOESS) observation satellites—CloudSat, a
Preparatory Project, or NPP satellite, will continue some of the mea- joint effort of NASA, the Canadian
surements begun by the Earth Observing System and will demonstrate Space Agency, and the United States
new instruments for the Nation’s future joint civilian and military weather Air Force, and the Cloud-Aerosol
satellite system. NPP is scheduled for launch in 2009; and Lidar and Infrared Pathfinder
Satellite Observations (CALIPSO)
• The Aquarius mission, scheduled for launch in 2009, will be the first satellite, a joint project of NASA and
satellite dedicated to obtaining global measurements of sea surface sa- France’s Centre National d’Etudes
linity, a key factor linking global ocean circulation and climate change. Spatiale—launched from Vandenberg
Air Force Base in California. The satel-
NASA also is working with partners to reduce the time span between ob- lites joined the Afternoon, or “A-train,”
servations and production of useful data products. NASA is working with constellation, which measures gases,
aerosols, clouds, temperature, rela-
NOAA and inter-agency forums to transition mature research capabilities to tive humidity, and radiative fluxes (the
operational systems and to utilize fully those assets for research purposes. amount of radiation passing through
In particular, they have created the Joint Center for Satellite Data Assimila- the atmosphere). By mid-summer,
tion and the Short-Term Regional Prediction Center to accelerate the use of both satellites were producing valu-
research data in operational forecasting in global and local weather fore- able data. (Boeing/T. Baur)
casting, respectively.

Findings from a decadal survey conducted by the National Research Council’s Ad-hoc Committee on Earth
Science and Applications from Space will influence strongly the process by which NASA implements future space-
based missions for Earth science. The committee’s final report is scheduled for release at the end of 2006.

24 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

Sub-goal 3B: Understand the Sun and its effects on


Cost of Performance
Earth and the solar system. (in millions)
Life on Earth is closely linked to the Sun. Changes in the Sun’s average $974.71
energy output have been shown to cause dramatic climate changes over the
Responsible
centuries as solar activity went through a series of high and low cycles. During
increased solar activity (i.e., an increase in sunspots), the Sun emits powerful
Mission Directorate
flares that can disrupt telecommunications and navigation, threaten the health Science
of astronauts in space, damage satellites, and disable electric power grids.

Scientists are just beginning to understand the physics of the Sun and its connection to Earth and the solar sys-
tem. Increasing this understanding will enable scientists to predict the impact of solar variability on humans and
space hardware. To achieve this goal, NASA is enhancing scientific understanding of the characteristics of solar
wind, Earth’s magnetosphere, and the space environment throughout the solar system, the heliosphere (the bubble
in space around the Sun created by the solar wind), and planetary environments as a single, connected system.
NASA also has begun to characterize the internal dynamics of the Sun and how Earth’s magnetosphere responds
to solar activity. Now NASA’s challenge is to use this new knowledge to enable prediction of solar events and the
space weather they produce.

Reaping Benefits
Society is becoming increasingly dependent on technologies that are vulnerable to solar activity and space weather
events, like wireless communications and satellite-based navigation, so the need to predict solar events and miti-
gate their effect is critical to the public’s safety, security, convenience, and comfort. This prediction capability is
critical to both human and robotic space exploration, as well, since space weather events can disrupt communi-
cations and spacecraft navigation and expose astronauts to unsafe levels of radiation. A better understanding of
solar events and heliophysics will provide researchers the information needed to develop systems that will protect
astronauts, satellites, and technologies in space and on Earth from harmful space radiation.

In addition to helping with space weather prediction and mitigation, NASA’s heliophysics research provides insights
into how the solar system evolved, how it produced and sustains life, and what will happen to this unique environ-
ment over time.

Highlighting Achievements
The backbone of NASA’s heliophysics research is the multi-satellite Heliospheric Great Observatory, which
includes all of NASA’s currently operational heliophysics spacecraft. In FY 2006, the Heliospheric Great Observatory,
including U.S. instruments on the European Space Agency’s four Cluster spacecraft, observed an immense jet of
electrically charged solar wind particles between the Sun and Earth. The jet was powered by clashing magnetic
fields in a process called “magnetic reconnection.” Similar reconnection-powered jets occur in Earth’s magneto-
sphere, producing an effect that can disable orbiting spacecraft and disrupt power grids. However, the recently

NASA’s Advanced Composition Explorer (ACE) and Wind


spacecrafts, along with the European Space Agency’s Cluster
spacecrafts, encountered solar particle jets spanning 1.5 mil-
lion miles. The jets (indicated by red arrows) are sandwiched
between sheets of opposite magnetic fields (blue arrows).
Earth’s magnetic environment is visible to the right. The blue
bubble in this magnetic environment represents a cross-sec-
tion of the bow shock formed as solar wind hits Earth’s mag-
netic field. The red area is a cross section of the magnetic
field surrounding Earth (the small blue sphere). (NASA/M.
Davis, Univ. of California at Berkeley)

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 25


discovered interplanetary jets are far larger than those that occur within Earth’s magnetosphere. This observation
is the first direct measurement indicating that magnetic reconnection can happen on immense scales.

Understanding magnetic reconnection is fundamental to understanding explosive phenomena like solar flares and
gamma ray bursts throughout the universe and even nuclear fusion experiments conducted in laboratories. These
observations also are proving important for planning the future four-spacecraft Magnetospheric Multiscale mission,
which will study the fundamental physical process of magnetic reconnection.

The Great Observatory also discovered that rising tides of hot air from intense thunderstorm activity over South
America, Africa, and Southeast Asia are connected to changes in the structure of Earth’s ionosphere, according
to NASA-funded researchers in a paper published in the August 11, 2006, issue of Geophysical Research Letters.
The ionosphere is a layer of electrically charged plasma formed by solar X-rays and ultraviolet light. Storm-induced
changes to the ionosphere influence the structure of the atmosphere and can disrupt radio signals from commu-
nication and navigation satellites.

Using data from NASA’s Imager for Magnetopause-to-Aurora Global Exploration (IMAGE) spacecraft, the research
team found four mysterious bright regions of plasma that were 20 to 30 percent more dense than the average
bands of plasma encircling Earth above the equator. Three of the bright regions were located over tropical rainfor-
ests with plenty of storm activity. Computer simulations confirmed that the storms in these tropical areas produce
rising tides of hot air, but the simulations could not explain the connection between the storms and the bright
areas in the two bands. Thunderstorms develop in Earth’s dense lower atmosphere just 10 miles over the equator.
However, the plasma bands develop 500 miles above Earth in the ionosphere where the gas is about 100 million
times less dense. The tide of hot air needs to collide with atoms in the ionosphere to create the bright areas, but
because the gas in the ionosphere is so thin, atoms rarely collide.

In FY 2006, additional research showed that the tides could affect the plasma bands indirectly. Below the plasma
bands, a layer of the ionosphere called the E-layer becomes partially electrified during the day. This E-layer shapes
the plasma bands above by creating an electric field when the charged particles in the E-layer are blown across
Earth’s magnetic field. The research model showed that the rising tides of hot air from tropical storms around the
world dump their energy in the E-layer, disrupting the plasma there. This in turn disrupts the electric fields and cre-
ates dense, bright zones in the bands above.

This is the first time that scientists have identified a regional influence on multiple layers of the atmosphere and
related space weather. They now know that accurate predictions of ionospheric space weather disturbances must
incorporate the effect of tropical weather.

In May 2006, NASA added five new Virtual Observatories to its Heliophysics Data Environment, a project to create a
standardized, electronic tool to collect, store, manage, and distribute Sun–Earth physics mission data. The Virtual
Observatories concept is part of an international effort to make accessible to the world’s science community the
vast, dynamic body of available astronomy and astrophysics data.

Confronting Challenges
All spacecraft that currently constitute NASA’s Heliospheric Great Observatory are operating in extended service,
past their planned ends-of-missions. However, the Heliophysics Division made good progress in FY 2006 toward
refreshing the Observatory. NASA’s partner for the Time History of Events and Macroscale Interactions (THEMIS)
mission delivered, integrated, and tested the instruments for THEMIS’s five spacecraft, and the mission is on
schedule to launch late in 2006. NASA also tested and prepared the Aeronomy of Ice in Mesosphere (AIM) and
Solar Terrestrial Relations Observatory (STEREO) missions for launch in FY 2007. Both missions were delayed in
FY 2006 due to technical problems with their launch vehicles. NASA is working with the launch providers to prevent
further delays. In addition, the Japanese Aerospace Exploration Agency (JAXA) launched the joint JAXA–NASA
Solar–B mission, now renamed Hinode (the Japanese word for “sunrise”), on September 22, 2006. Through high-
resolution observations, Solar–B will help researchers study the mechanisms that power the solar atmosphere and
drive solar eruptions.

26 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

Moving Forward
In the years ahead, NASA will reconfigure portions of the Heliospheric Great Observatory into “smart” constella-
tions, sets of strategically located satellites that will distribute data through Virtual Observatories.

STEREO is the next mission scheduled to launch in the Solar Terrestrial Probes Program, which manages missions
that study the basic physics of how the Sun, its heliosphere, and planetary environments are connected in one
system. STEREO will use two identical spacecraft to provide stereoscopic measurements of the Sun and coronal
mass ejections, powerful solar eruptions that are a major source of magnetic disruptions on Earth and a key com-
ponent of space weather.

Scheduled to launch in early 2007, THEMIS will study the onset


of magnetic substorms within the tail of Earth’s magnetosphere.
THEMIS is composed of five microsatellite probes that will trav-
el through different regions of the magnetosphere to provide
information about substorm instability, a fundamental process of
transporting charged particles from the magnetosphere into Earth’s
upper atmosphere.

AIM, a mission scheduled for launch in early 2007, will look at


Earth’s highest-altitude clouds. By characterizing the regions
in which these clouds form, AIM will test the hypothesis that
increased sightings of these clouds are related to changes in the
concentrations of trace gases in the atmosphere and associated
temperatures.

NASA will launch the second of the Two Wide-angle Imaging


Neutral Atom Spectrometers, or TWINS–B, in 2007. NASA
launched TWINS–A in early FY 2006. Together, the two TWINS
spacecraft will provide stereo imaging of Earth’s magnetosphere
enabling three-dimensional global visualization of the connections
between different regions of the magnetosphere and solar wind. In July 2006, technicians at Astrotech Space
Operations, a commercial provider of satellite
Launched almost 30 years ago to study Jupiter and Saturn, the launch processing services in Florida, per-
Voyager spacecraft are journeying slowly out of the solar system. formed black-light inspection and cleaning
Scientists expect that in FY 2007, Voyager 2 will cross the termina- of Observatory B, part of the twin-spacecraft
tion shock, a boundary where solar winds slow to subsonic speeds STEREO mission. Later, the technicians
at the edge of the Sun’s influence. Early observations of this wrapped the observatory for transfer to the
hazardous processing facility, where it was
boundary by Voyager 2 indicate a large distortion in the shape of
weighed and fueled. At the Kennedy Space
the heliosphere. Voyager 2 will supplement the data collected from Center, crews stacked the Delta II rocket
Voyager 1 when it crossed the termination shock boundary in 2005, designated to launch STEREO in FY 2007.
providing scientists with new information about local processes and (NASA/G. Shelton)
the global structure and dynamics of the heliosphere.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 27


Sub-goal 3C: Advance scientific knowledge of the
Cost of Performance
origin and history of the solar system, the potential for (in millions)
life elsewhere, and the hazards and resources present $1,948.93
as humans explore space. Responsible
NASA uses robotic science missions to investigate alien and extreme Mission Directorate
environments throughout the solar system. These missions help scientists Science
understand how the planets of the solar system formed, what triggered the
evolutionary paths that formed rocky terrestrial planets, gas giants, and small,
icy bodies, and how Earth originated, evolved, and spawned life. The data from these missions guide scientists
in the search for life and its precursors beyond Earth and provide information to help NASA plan future human
missions into the solar system.

Reaping Benefits
NASA’s robotic exploration missions have taken humans to the edge of the solar system, revealing the beauty and
complexity of its planets, moons, comets, and asteroids. These missions extend knowledge and understanding
about Earth’s neighborhood, the evolution of planetary systems, and the solar system’s future. They also offer clues
to the processes and events that created habitable zones in the solar system and beyond.

Robotic exploration lays the groundwork for future human missions to the Moon, Mars, and other bodies in the
solar system by characterizing the environment of these distant worlds, validating new capabilities, and identifying
potential landing sites. Robotic missions help NASA scientists explore the space environment to identify potential
hazards, so that future human exploration missions can avoid the hazards or find ways to ameliorate the effects.
In addition to hazards, robotic missions search for resources that could support long-duration human exploration.
For example, the Mars Exploration Rovers and the current suite of Mars-orbiting missions are providing detailed
information about the topography and mineral composition of the Martian surface and searching for signs of liquid
water to identify landing sites that could provide human explorers with resources that would allow them to “live off
the land.”

Highlighting Achievements
Launched in 2005, the Mars Reconnaissance Orbiter (MRO)
entered Mars orbit in March 2006 and began its six-month
campaign of aerobraking, a process by which the spacecraft
repeatedly dips into Mars’ atmosphere until it achieves the
desired orbit. Using aerobraking instead of thruster firings
reduces the amount of fuel required for the mission, making the
vehicle lighter for launch. MRO achieved the desired orbit in ear-
ly September 2006 and it will begin its two-year science phase
in November 2006.

During its five-year mission, MRO will perform two important tasks:
search for water and conduct reconnaissance for future robotic
and human Mars missions. During MRO’s science phase, it will
return more data about the Red Planet than all previous Mars
missions combined, helping researchers decipher the processes
of change and prepare for human missions to Mars. It will study
geological formations revealing the history of water on Mars, and Team members for MRO’s High Resolution
it will search for minerals indicating whether water still sits below Imaging Science Experiment gather at the Univer-
sity of Arizona campus in Tucson to view the first
the surface. MRO will conduct close-up surveys, using the larg-
Mars images (visible on the computer screen and
est cameras ever flown on a planetary mission, to look for hot projection screen in this photo) taken on March
springs and other small water features and to identify obstacles 24, 2006. (NASA/JPL/University of Arizona)
like large rocks that could jeopardize the safety of future landers

28 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

and rovers. MRO also will provide a high-data-rate


communications relay that will support future mis-
sions to the surface of Mars.

The Cassini spacecraft, which has been in orbit


around Saturn since July 2004, may have found
liquid water reservoirs that erupt in Yellowstone-like
geysers on Saturn’s moon, Enceladus. This rare
occurrence of liquid water so near the surface raises
new questions about this mysterious moon. If the
plume does contain liquid water, Enceladus may
provide an environment suitable for living organisms. Plumes of icy material extend above Enceladus’s southern polar
Other moons in the solar system, like Jupiter’s moon region in this image taken by Cassini on February 17, 2006. The
Europa, have liquid water oceans covered by miles color-coded version on the right reveals a fainter and much more
extended plume component separated from the main plume by
of icy crust. Enceladus, however, appears to have
about 60 miles. (NASA/JPL/Space Science Institute)
pockets of liquid water just yards below the surface.

Study of the plumes also suggest that Enceladus has active volcanism, where molten rock from the core pushes
its way to the surface and releases lava, ash, and gas that alter the surrounding environment. Previously, research-
ers only knew of two places in the solar system where volcanism currently occurs, Earth and Jupiter’s moon, Io.
Volcanism also may occur on Neptune’s moon, Triton.

In spring 2008, researchers will get another chance to look at Enceladus when Cassini flies within 220 miles of the
moon.

Confronting Challenges
NASA’s Planetary Science Division had a successful fiscal year, with operational missions working well and return-
ing exciting scientific data. Several missions in implementation incurred problems. Due to cost and technical
problems, NASA stopped the Dawn mission, then restarted it once a revamped implementation schedule and plan
was developed and approved. This delayed the Dawn’s launch date, but did not impact key science requirements.
Due to funding shortfalls caused by Agency reprioritizations, NASA re-baselined the Juno mission. The new plan
will delay launch, but will not impact key science requirements.

Moving Forward
New Horizons, launched in January 2006, is on its multi-year journey to Pluto, Charon, and the small rocky bodies
that make up the Kuiper Belt. After an encounter with Jupiter in early 2007, when the spacecraft will gain a gravity
assist from the massive planet, New Horizons will cruise for approximately eight years and arrive at Pluto in 2015.
Once there, New Horizons will study the small, icy objects that inhabit this distant part of the solar system, revealing
new information about their formation and the source and composition of comets.

The MESSENGER spacecraft, which NASA launched in August 2004, will fly by Venus in October 2006 and again in
June 2007 as the spacecraft makes its way to the solar system’s innermost planet, Mercury. The flybys will provide
a gravity assist, after which MESSENGER will use the pull of Venus’ gravity to alter and correct its path to Mercury,
saving precious fuel. MESSENGER will perform its first flyby of Mercury in January 2008, and it will gradually work
its way into orbit by March 2011. The spacecraft will take a close look at Mercury’s surface, crust, atmosphere,
and magnetic field to learn more about Earth’s mysterious, rocky neighbor.

In 2006, NASA began to build and test the Phoenix Mars Lander. Scheduled for launch in 2007, Phoenix will land
on Mars’ icy northern pole to study the history of water and assess the potential for life at the ice–soil bound-
ary. The spacecraft will take samples with a robotic arm and analyze the samples using its on-board “portable
laboratory.”

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 29


Throughout 2006, the Dawn mission underwent review, and engineers began preparing the spacecraft for launch
in summer 2007. Dawn will study two large asteroids, 1 Ceres and 4 Vesta, to help scientists learn more about the
conditions and processes that formed the solar system.

Also in 2006, NASA initiated the implementation phase of the Mars Science Laboratory (MSL) mission. MSL is the
next flagship mission to conduct exploration of the solar system. This challenging mission, planned for launch in
2009, is a rover the size of a compact car. It boasts a suite of 10 scientific instruments that will conduct definitive
mineralogy, search for organic compounds, study Mars’s meteorology, and explore the potential past and present
habitability of Mars. The largest lander since Viking in the 1970s, MSL’s technologies will pave the way for future
missions to planetary surfaces and directly benefit eventual human exploration of Mars.

30 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

Sub-goal 3D: Discover the origin, structure, evolution,


Cost of Performance
and destiny of the universe, and search for Earth-like (in millions)
planets. $1,910.95
NASA’s Astrophysics Division seeks to answer fundamental questions about Responsible
the larger environment in which humans live: How did the universe begin? Mission Directorate
Will the universe have an end? How are galaxies, stars, and planets created Science
and how do they evolve? Are humans alone in the universe?

Using ground-based telescopes and space missions, NASA enables research to understand the structure, content,
and evolution of the universe. This research provides information about humankind’s origins and the fundamental
physics that govern the behavior of matter, energy, space, and time. NASA-supported researchers look far into the
universe, towards the beginning of time, to see galaxies forming. They also search for Earth-like planets around
distant stars, determine if life could exist elsewhere in the galaxy, and investigate the processes that formed Earth’s
solar system.

Reaping Benefits
The study of the universe benefits the Nation’s scientific research community and industrial base by focusing
research and advanced technology development on optics, sensors, guidance systems, and power and propulsion
systems. Some of these technologies find their way into the commercial and defense sectors.

Research into the origins and nature of the universe contributes to “the expansion of human knowledge . . . of
phenomena in the atmosphere and space,” a charter objective in the 1958 Space Act. NASA’s astrophysics mis-
sions—particularly the three Great Observatories, the Hubble Space Telescope, the Spitzer Space Telescope, and
the Chandra X-ray Observatory—have provided researchers with new ways of looking at the universe so that they
can expand knowledge about cosmic origins and fundamental physics. The interesting and beautiful images from
these observatories also are educational tools to help spark student interest in science, technology, engineering,
and mathematics.

Highlighting Achievements
New results based on three years of continuous observations from the Wilkinson Microwave Anisotropy Probe
(WMAP) provided the most detailed temperature map to date of the early universe. The map discerns temperature
differences of less than one-millionth of a degree, yielding the first full-sky map of the polarization of the cosmic
microwave background, the afterglow light from the first moments after the Big Bang. Using this information, the
WMAP science team announced two major results:
additional evidence that cosmic inflation drove the
early expansion of the universe and an improved esti-
mate of when stars first “turned on.”

In November 2005, scientists using NASA’s Spitzer


Space Telescope announced that they detected light
in the Draco constellation that may be from the earli-
est objects in the universe. This light could be from
the very first stars or from hot gas falling into the first
black holes. The science team described the obser-
vation as comparable to the glow of a distant city at
night from an airplane—bright, but too distant and This map, created using data from WMAP, helps to pinpoint
feeble to resolve individual objects. If confirmed, the when the first stars formed and provides new clues about
observation will provide a glimpse of an era more than events that transpired in the first trillionth of a second of the
13 billion years ago when, after the fading embers of universe. Colors indicate “warmer” (red) and “cooler” (blue)
spots. The white bars show the “polarization” direction of the
the Big Bang gave way to millions of years of perva-
oldest light. (NASA/WMAP Science Team)
sive darkness, the universe came alive. The Spitzer

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 31


discovery supports observations made in the 1990s
by NASA’s Cosmic Background Explorer (COBE)
suggesting there may be an infrared background
that scientists could not attribute to known stars. It
also supports observations made in 2003 by WMAP
estimating that stars first ignited 200 million to 400
million years after the Big Bang.

Using an armada of telescopes, an internation-


al team of astronomers, funded in part by NASA,
found the smallest planet ever detected outside the
solar system. The extrasolar planet is five times as
massive as Earth and orbits every 10 years around
a red dwarf, a relatively cool star. The distance
between the planet and its host is about three times
greater than that between Earth and the Sun. The
planet’s large orbit and its dim parent star make its
likely surface temperature a frigid minus 364 degrees
Fahrenheit, a temperature similar to that of Pluto
even though the planet is about 10 times closer to The top panel is an infrared image from Spitzer of stars and
its star than Pluto is to the Sun. galaxies in the Draco constellation. The bottom panel is the re-
sult after all the forefront stars, galaxies, and artifacts have been
The new planet, which scientists think is an icy, masked out. The background has been enhanced to reveal a
glow that cannot be attributed to more recent galaxies or stars.
giant version of terrestrial planets like Earth and
This could be the glow of the first stars in the universe. (NASA/
Mars, orbits the most common type of star in the GSFC/JPL–Caltech)
Milky Way Galaxy, a red dwarf 20,000 light-years
away in the Scorpius constellation. The discovery
indicates that Earth-mass planets are not uncommon. The finding also supports theories of how Earth’s solar
system was formed, which proposes that planets were created from material accreting around a star.

Confronting Challenges
The Science Mission Directorate’s Astrophysics Division is facing a budgetary challenge stemming from the many
big missions it has undertaken. The biggest, most complex of these missions is the James Webb Space Telescope
(JWST), identified by the National Research Council as a top-priority new initiative for astronomy and astrophysics
in the current decade. NASA initially underestimated the life-cycle cost for JWST because of the difficulties predict-
ing costs associated with developing a cutting-edge mission before completing the first major design review. In
FY 2007, NASA and Agency partners will verify that all JWST new technologies have reached sufficient maturity to
permit a realistic estimate of what the mission will cost.

Both the schedule and budget for the Space Interferometry Mission (SIM) exceeded NASA’s initial estimates. To
fit the mission within the Astrophysics Program’s resources, NASA will scale back the pace of the SIM project and
consider how this activity fits within the NASA planet finding and characterization program.

Since 1996, NASA and the German aerospace agency DLR have been developing the Stratospheric Observatory
for Infrared Astronomy (SOFIA) mission, an astronomical observatory permanently installed in a modified Boeing
747 aircraft. Because of cost growth from technical and schedule problems, NASA held off on committing final
funding to the project in its FY 2007 budget submission to Congress. In June 2006, NASA’s Program Management
Council determined that the program faces no insurmountable technical or programmatic challenges and, on July
6, NASA’s Administrator gave the go-ahead to complete development. However, the Agency will conduct addi-
tional reviews to examine the proposed management and operations scenarios for this observatory and will base
future development decisions on the project’s successful achievement of cost and schedule milestones.

32 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

Moving Forward
SOFIA passed a major milestone in August 2006 when its Boeing 747 aircraft taxied down a runway in Texas under
its own power. The SOFIA Aircraft Operations Team will conduct the first test flight in early 2007.

In FY 2006, the Stanford Linear Accelerator Center delivered to NASA the Gamma-ray Large Area Space
Telescope’s (GLAST’s) primary instrument, the Large Area Telescope. The GLAST mission will improve scientists’
understanding of the structure of the universe by analyzing the direction, energy, and arrival time of celestial high-
energy gamma rays. GLAST will study the mechanisms of galaxies possessing a central core, or nuclei, that
produces more radiation than the rest of the galaxy. It also will study dark matter, supernova remnants, pulsars, and
rotating neutron stars, providing information crucial to solving the mysteries of high-energy gamma ray sources.
NASA continues to prepare GLAST for launch in Fall 2007.

NASA’s Astrophysics Division also has other observatory missions—including JWST, the Wide field Infrared Survey
Explorer (WISE), and the Kepler mission—in formulation or development for launch near the end of the decade or
early in the next decade. Managers for the Beyond Einstein Program have deferred selecting the program’s next
mission until a program-level review is completed. To aid with mission selection, program engineers will assess
technology readiness for several mission options, including the Joint Dark Energy Mission (JDEM, a joint activity of
NASA and the Department of Energy), Constellation–X (Con–X), the Laser Interferometer Space Antenna (LISA),
Cosmic Microwave Background Polarization Probe (CMBPol), and the Black Hole Finder Probe (BHFP). The
Beyond Einstein Program develops missions that study the physics of phenomena, like black holes, dark energy,
and the Big Bang, predicted by several of Albert Einstein’s theories.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 33


Sub-goal 3E: Advance knowledge in the fundamental
Cost of Performance
disciplines of aeronautics, and develop technologies for (in millions)
safer aircraft and higher capacity airspace systems. $1,050.00
NASA’s Aeronautics Research Mission Directorate conducts high-quality, Responsible
innovative research to expand the boundaries of aeronautical knowledge for Mission Directorate
the benefit of the broad aeronautics community, which includes the Agency’s
Aeronautics Research
partners in academia, industry, and other government agencies.

Reaping Benefits
NASA’s aeronautics research leads to the development of revolutionary concepts, technologies, and capabilities
that enable revolutionary change to both the airspace system and the aircraft that fly within it, facilitating a safer,
more environmentally friendly, and more efficient air transportation system.

NASA’s aeronautics research also supports the Agency’s space exploration Strategic Goals. The Aeronautics
Research Mission Directorate conducts research in key aeronautics disciplines such as aerodynamics, aerothermo-
dynamics, materials, structures, and flight controls to advance the Nation’s capabilities for safe flight through any
atmosphere at any speed, be it our own, or that of another planet.

Highlighting Achievements
During FY 2006, NASA initiated a comprehensive restructuring of the Aeronautics Research Mission Directorate to
ensure that it pursues long-term, cutting-edge research that expands the boundaries of aeronautical knowledge for
the benefit of the broad aeronautics community, including the Agency’s partners in academia, industry and other
government agencies. Three core principles guided the restructuring:
1. Dedicate NASA aeronautics initiatives to the mastery and intellectual stewardship of the core competencies of
aeronautics for the Nation in all flight regimes;
2. Focus research in areas that are appropriate to NASA’s unique capabilities; and
3. Address the fundamental research needs of the Next Generation Air Transportation System (NGATS) while
working closely with Agency partners in the Joint Planning and Development Office (JPDO).
Given these three principles, NASA then established the four programs within the Aeronautics Research Mission
Directorate: the Fundamental Aeronautics Program; the Aviation Safety Program; the Airspace Systems Program;
and the Aeronautics Test Program. The Fundamental Aeronautics Program conducts cutting-edge research that
produces concepts, tools, and technologies that enable the design of vehicles that fly through any atmosphere at
any speed. The Aviation Safety Program is focused on developing revolutionary tools, methods, and technologies
that will improve the inherent safety attributes of current and future aircraft that will be operating in the evolving
National Airspace System. The Airspace Systems Program directly addresses the fundamental air traffic manage-
ment research needs of the NGATS. This research will yield revolutionary concepts, capabilities, and technologies
that will enable significant increases in the capacity, efficiency and flexibility of the National Airspace System. The
Aeronautics Test Program is ensuring the strategic availability and accessibility of a critical suite of aeronautics test
facilities necessary to meet aeronautics, Agency, and national needs.

The Aeronautics Research Mission Directorate established a four-step approach to putting together technical plans
in the ten aeronautics projects in our four aeronautics programs. The approach was designed to enable us to
foster close collaboration with and to facilitate the exchange of ideas and information among researchers at NASA,
industry, academia, and other government agencies, in a manner that benefits the community broadly. The four
steps were:
1. NASA researchers, with input from other government agency partners, developed preliminary 10-year road-
maps for each program including technical milestones for each project.

34 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

2. NASA released a Request for Information to solicit interest from industry for non-reimbursable cooperative
partnerships in pre-competitive research that would allow NASA to leverage industry’s systems-level expertise
while facilitating the rapid transfer of knowledge and technology from NASA to industry.
3. Using the preliminary roadmaps as a starting point, NASA researchers incorporated feedback from respon-
dents to the Request for Information, as well as from colleagues in other government agencies, to develop
refined technical proposals for each project. Panels of government subject-matter experts then reviewed and
evaluated the proposals based on their technical, management, resource, and partnership plans. This rigorous
proposal review process ensured that NASA has technically credible and relevant research objectives and a
sound approach for pursuing these objectives. It also allowed NASA to identify research areas where it needed
to supplement in-house capabilities with external expertise.
4. Finally, NASA released a NASA Research Announcement to solicit proposals, in a full and open competition,
from the external community in those research areas. The Aeronautics Research Mission Directorate intends
to have awards in place by November 2006.
While NASA spent much of the fiscal year planning and reorganizing the Agency’s aeronautics research activities,
several programs continued to make notable achievements. Within the Airspace Systems Program, the Future Air
Traffic Management Concepts Evaluation Tool (FACET) won NASA’s Software of the Year award for 2006. FACET
is a flexible software tool that rapidly models up to 15,000 aircraft trajectories, using Federal Aviation Administration
air traffic data and weather data from the National Weather Service, on a desktop computer to help plan traffic flows
at the national level. The Aeronautics Test Program
initiated test technology investments, including stan-
dardizing wind tunnel measurement systems across all
the Centers and developing test facility control system
simulators. The Aviation Safety Program completed
the Airborne Subscale Transport Aircraft Research (Air-
STAR) test bed. It will support research in the preven-
tion and recovery of upsets in transport aircraft. Finally,
the Fundamental Aeronautics Program completed the
Mach 5 testing of the Ground Demonstration Engine–2
in the NASA 8-Foot High Temperature Tunnel. NASA
teamed with the Air Force Research Laboratory and
Pratt & Whitney Rocketdyne to complete the tests.
The NASA tests marked the first time a closed-loop,
hydrocarbon-fueled, fuel-cooled scramjet was tested The Ground Demonstration Engine–2 (GDE–2) undergoes tests
at hypersonic conditions. Fuel cooling of the scram- at the NASA Langley Research Center 8-Foot High Tempera-
jet is essential for the hardware to survive the extreme ture Tunnel. Mach 5 air is compressed in the inlet, without the
temperatures of hypersonic flight. aid of rotating parts, and ignited with the addition of a hydro-
carbon fuel to produce thrust at hypersonic speeds. (NASA)
Confronting Challenges
In FY 2006, the Aeronautics Research Mission Directorate worked toward aligning its research with current Agency
needs. NASA leadership closed-out discontinued projects, reassigned staff, and identified new projects. The
Aeronautics Research Mission Directorate now is positioned to begin work on these challenging new projects.

Moving Forward
Fundamental Aeronautics Program (projects to be achieved in 2007 to 2008)
• The Subsonic Fixed Wing project will develop and test component technology concepts used in conventional
aircraft configurations to establish the feasibility of achieving significant noise reduction (Stage 3—42 EPNdb
cum). For unconventional aircraft configurations, project engineers will develop and test component technol-
ogy that establishes the feasibility of achieving short take-offs and landings on runways less than 3,000 feet.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 35


• The Subsonic Rotary Wing project will validate model engine stall-control concepts using component test data
obtained in the Glenn Research Center’s CE18 Facility in order to improve the operability range of rotorcraft
(helicopter) engines.
• The Supersonics project will use laboratory tests to validate a composite containment system for supersonic
engine fan blades that is 20-percent lighter than the metallic containment system developed by the High Speed
Research Program in the late 1990s (which now serves as a technology baseline). This will demonstrate
advancement in new concepts for high efficiency propulsion and airframes for supersonic aircraft. The project
also will validate a high-fidelity analysis technique for assessing the impact of nozzle plume effects on the off-
body flow field of a supersonic aircraft, aiding in the development of predictive noise-propagation modeling.
• The Hypersonics Project will investigate an advanced Mars entry shape by sub-orbital flight testing of the
Sub-orbital Aerodynamic Re-entry Experiments (SOAREX). The flight data, coupled with ground-based experi-
mental data, will provide a baseline for the validation of computational tools to predict flight characteristics and
the life of the ablator heat shield materials under extreme heating. In a separate activity, NASA’s arc-jet facilities
will be used to characterize the behavior of advanced heat shield systems to provide a database for material
degradation models for hypersonic vehicles.
Aviation Safety Program (projects to be achieved in 2007)
• Researchers will assess aircraft aging and durability research capabilities at NASA and other agencies to estab-
lish a baseline for the project.
• The Integrated Intelligent Flight Deck project will develop a Phenomena Identification and Ranking Table that
baselines the project’s state-of-the-art hazard knowledge and identifies future flight deck research needs in
sensor technologies.
• The Integrated Vehicle Health Management project will install flight research measurement equipment and
perform flight-readiness checks of ice crystal measuring systems for follow-on flight research campaigns. In
2008, the project will conduct in-flight tests in high ice–water content conditions to increase the accuracy of
measured total water content by 50 percent over the existing instrumentation.
• The Integrated Resilient Aircraft Controls project will assess a dynamic tool that is to be operated in the AirSTAR
flight research testbed. Additionally, project members will define upset condition capability requirements in
aerodynamics, propulsion, and structures and identify potential technology barriers.
Airspace Systems Program
• In FY 2007 through FY 2008, the Airspace Systems Program researchers will pursue advanced formulation
and development activities through laboratory analysis, as well as human-in-the-loop experiments with air and
ground operators, to evaluate automated strategic and tactical separation assurance under conditions with
increasing air-space complexity. Elements of complexity will include extensive diversity in aircraft size and
type, initial time-based metering technologies, refined communication, navigation, and surveillance capabilities,
failure recovery operations, increased uncertainty, and two- to three- times nominal traffic levels.
Aeronautics Test Program
• NASA and the Department of Defense will begin an aeronautics facility testing alliance, the National
Partnership for Aeronautics Testing, to develop cost and access policies to aid interagency cooperation and
use in the management of their respective assets.
• The Aeronautics Test Program will initiate activities that will improve facility operational efficiencies. Activities
of interest include exploring the centralization of NASA strain gauge balance (instrumentation that measures
forces in wind tunnels) activities which include balance technology development, design, manufacture, and
calibration.

36 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

Sub-goal 3F: Understand the effects of the space


Cost of Performance
environment on human performance, and test new (in millions)
technologies and countermeasures for long-duration $367.07
human space exploration. Responsible
When astronauts return to the Moon and journey to further destinations, they Mission Directorates
will be exposed to the microgravity, radiation, and the isolation of space for Exploration Systems
long periods of time. Keeping crews physically and mentally healthy during Space Operations
such long-duration missions will require new technologies and capabilities.
NASA is studying how the space environment, close quarters, heavy work-
loads, and long periods of time away from home contribute to physical and
psychological stresses and is developing technologies that can prevent or mitigate the effects of these stresses.
NASA also is looking for innovative ways to meet the basic needs of astronauts—oxygen, water, food, and shel-
ter—with systems that can operate dependably for weeks on the Moon and, eventually, for months on Mars.

Reaping Benefits
The medical knowledge and diagnostic and treatment technologies NASA uses to keep humans healthy and pro-
ductive in space improve the medical treatment and health of humans on Earth. For example, NASA’s research
into human adaptation to microgravity has helped scientists better understand the changes that come with aging,
such as bone loss, muscle atrophy, and loss of balance. NASA-developed telemedicine technologies, which helps
doctors on Earth monitor and treat astronauts in space through a combination of computer-assisted imaging and
diagnostics, video, and telecommunications, also help doctors deliver quality medical care to people in isolated or
underserved areas of the world. These technologies allow doctors located thousands of miles apart to collaborate
in real time on medical treatment.

Companies have taken NASA life-support and medical technologies and developed them into commercial products
that serve the public. Light-emitting diodes originally designed to grow plants in experiments aboard the Space
Shuttle are now used to treat brain tumors. Devices built to measure the astronauts’ equilibrium when they return
from space are widely used by major medical centers to diagnose and treat patients with head injuries, stroke,
chronic dizziness, and central nervous system disorders. A company turned a small, portable device originally
designed to warn Shuttle and International Space Station (ISS) crewmembers of depressurization into a hand-held
device that warns pilots, mountain climbers, skydivers, and scuba divers of hazardous conditions before depres-
surization and hypoxia become a health threat. For more information on NASA technology-transfer successes,
please visit the Spinoff home page at http://www.sti.nasa.gov/tto/.

Highlighting Achievements
In FY 2006, the Exploration Systems Mission Directorate began implementing a number of recommendations
presented in the Exploration Systems Architecture Study completed in 2005. The Exploration Systems Mission

In Spring 2006, engineers from NASA’s Marshall Space Flight Center


helped improve the lives of villagers in Kendala, Iraq, using technolo-
gies and capabilities developed for the Environmental Control and Life
Support System used on the International Space Station. A non-prof-
it group, Concern for Kids, donated to Kendala a water filtration and
purification pump system designed by Water Security Corporation using
Space Certified Technology developed for NASA. When the system first
arrived in Kendala, the iodine bed that helps purify the water had dried
out. Engineers at Marshall emailed advice and instructions that helped
the team in Kendala fix the system. The villagers now have safe, clean
drinking water. (NASA)

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 37


Directorate refocused biomedical research and human life support activities through a new set of milestones and
requirements that target timely delivery of research products and reorganized its management structure to sup-
port NASA’s exploration goals. As part of this effort, Exploration Systems created two new programs, the Human
Research Program and the Exploration Technology Development Program. During this refocusing, Human
Research and Exploration Technology researchers continued work on many projects, continuing the Exploration
Systems Mission Directorate’s progress toward achieving Sub-goal 3F.

To mitigate the highest risks to astronaut health and performance, the Human Research Program conducts
research and develops technologies to enable safe, reliable, and productive human space exploration. In FY 2006,
the program initiated an exhaustive programmatic review of its focus areas—bone and muscle research, cardiology,
pharmacology, neurological sciences, nutrition, immunology,
behavioral health, and performance disciplines—to assess the
program’s research, data, and knowledge completed to date
and its significance to current exploration missions and deter-
mine what work still needs to be done to implement the Vision
for Space Exploration.

The Human Research Program also restructured and refo-


cused its ISS utilization approach under the ISS Medical project
to better coordinate ISS research and maximize use of facili-
ties aboard the ISS and other space-based research platforms.
One of the first flight experiments conducted under this new
project is the Stability of Pharmacotherapeutic and Nutritional
Compounds experiment, delivered to the ISS by STS-121 in
July 2006. The Stability experiment documents how the radia- Scientists at Johnson Space Center analyze the Sta-
tion environment in space affects vitamins and compounds in bility samples returned on STS-121. Knowing how
foods and medication. The results will help researchers select, the space radiation environment affects foodstuffs
or develop if necessary, foods and medications that will remain and pharmaceuticals will help NASA better plan for
stable and reliable during long-duration human exploration exploration missions. (NASA)
missions to the Moon and Mars.

The Exploration Technology Development Program develops technologies—structures, thermal protection sys-
tems, non-toxic propulsion, life support systems, capabilities for in-situ resource utilization, and many others—for
future human and robotic exploration missions. In FY 2006, the program focused on maturing technologies for the
Orion Crew Exploration Vehicle through a combination of ground- and ISS-based research. Within the program,
the Exploration Life Support project made progress in developing new concepts and technologies for removing
carbon dioxide and humidity from spacecraft environments. These technologies are lighter and smaller than those
currently used on the ISS, freeing up valuable mass on future exploration vehicles. The Advanced Environmental
Monitoring and Controls project prepared monitoring technologies for flight deployment and testing aboard the ISS:
the Vehicle Cabin Air Monitor, which monitors gases in the air, the Electronic-Nose, which detects air “events,” and
a first-generation bacterial monitoring system.

In August 2006, ISS crew successfully completed the Dust and Aerosol Measurement Feasibility Test (DAFT), an
experiment to characterize the distribution and size of dust particles floating in the air aboard the ISS. DAFT tested
the effectiveness of fire safety technology in detecting greater-than-normal amounts of particles in the air, a difficult
task in a near-weightless environment where air circulates differently and heavier particles are not pulled toward the
ground. The technology validated by DAFT will fly as part of the Smoke Aerosol Measurement Experiment (SAME)
in 2007.

The NASA science officers for ISS Expeditions 12 and 13 conducted the Capillary Flow Experiment (CFE) to
determine how capillary forces—the interaction of liquid with solid that can draw a fluid up a narrow tube—act
in a near-weightless environment. NASA can use capillary forces to control fluid orientation and transport to
enable predictable performance for mission-critical systems such as propellant storage and water purification.

38 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

CFE first flew during Expedition 9 in 2004, and


In June 2006, NASA conducted “walk
experiment results have provided new data
back” tests at the Johnson Space Cen-
that engineers can apply to current and ter’s mock-up facility to determine if a
advanced system designs. crewmember could walk 10 kilometers
(a little over six miles) from a failed lunar
Confronting Challenges rover back to home base. In this pho-
to, a technician inside NASA’s Mark III
NASA’s greatest challenge for Sub-goal 3F is Advanced Space Suit is attached to a
limited access to the ISS and reduced ISS crew rig that simulates low gravity. While he
size following the Columbia accident. With the walked, equipment monitored his heart
reestablishment of regular Space Shuttle flights rate, temperature, and carbon dioxide
and the restoration of the ISS crew comple- output to evaluate how hard he worked
ment to three, ISS science productivity should to go 10 kilometers. The results of the
walk back tests will be used to improve
increase. space suit designs. (NASA)

Moving Forward
The Exploration Systems Mission Directorate is on track to develop critical technologies in time for the Orion Crew
Exploration Vehicle preliminary design review in 2008. To support this ambitious goal, NASA will fly a number of
experiments on the ISS, including SAME and the Boiling Experiment Facility, which will study boiling mechanisms
critical to the proper design of heat removal equipment for spacecraft. The Glenn Research Center is conduct-
ing final flight hardware testing on the Combustion Integrated Rack and the Fluids Integrated Rack that will form
the Fluids and Combustion Facility, an ISS facility that will accommodate the research needs of fluid physics and
combustion science. The Combustion Integrated Rack, currently scheduled for launch in summer 2008, has
a 100-liter combustion chamber surrounded by optical and other diagnostic packages. The Fluids Integrated
Rack, scheduled for launch in early 2009, features a large, user-configurable space for conducting experiments,
advanced imaging capabilities, laser and white light sources, and other capabilities. Once completed, the Fluids
and Combustion Facility will support experiments in fundamental fluids physics and combustion science to help
NASA develop life support technologies and propulsion systems.

In June 2006, the European Space Agency delivered its ISS module, the Columbus research module, to the
Kennedy Space Center. NASA engineers are processing the module for launch on the Space Shuttle in 2007.
Columbus will expand ISS research facilities and provide researchers with the ability to conduct numerous experi-
ments in the life, physical, and materials sciences. NASA plans to move the Human Research Facility racks from
the U.S. Destiny Laboratory (added to the ISS in 2001 and 2005) to Columbus to combine them with the European
Space Agency’s physiology racks, maximizing flight research capabilities for the Human Research Program.

In addition to its planned work on the ISS, the Human Research Program will characterize the structure and toxicity
of lunar dust. Using samples of dust vacuumed from Apollo space suits, scientists will analyze dust particle size,
morphology, and mineralogy to develop a simulated lunar dust that NASA can distribute in larger quantities for
research and testing. The program will start toxicity testing in 2008. Scientists will use test results to establish crew
exposure limits and to help them design environmental control and life support systems for lunar surface vehicles
and suits for extravehicular activities.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 39


Strategic Goal 4: Bring a new Crew Exploration
Cost of Performance
Vehicle into service as soon as possible after (in millions)
Shuttle retirement. $1,622.16
The Nation’s current space transportation systems—NASA’s Space Shuttle Responsible
and commercially available expendable launch vehicles—are unsuitable for Mission Directorate
human exploration beyond low Earth orbit. Therefore, the President and
Exploration Systems
Congress directed NASA to develop new space transportation capabilities
to return humans to the Moon and eventually carry them to Mars. NASA
initiated the Constellation Systems Program to achieve this objective. So far,
the program includes the Orion Crew Exploration Vehicle (CEV), Ares I, an expendable crew launch vehicle, Ares
V, a heavy-lift cargo launch vehicle, spacesuits and tools required by the flight crews, and associated ground and
mission operations infrastructure to support initial low Earth orbit missions.

Orion will be America’s new spacecraft for human space exploration. It will carry four crewmembers to the Moon
and serve as the primary exploration vehicle for future missions. It also will be capable of ferrying up to six astro-
nauts (plus additional cargo) to and from the International Space Station (ISS) if commercial transport services are
unavailable. The Ares I will consist of a solid rocket booster and an upper stage that can carry Orion into low Earth
orbit.

Reaping Benefits
Orion will support the expansion of human exploration missions and provide the means to take humans to the
Moon and eventually Mars, where they can conduct scientific activities and make discoveries not possible solely
with robotic explorers.

As with past and current human exploration programs, NASA’s efforts to develop Orion and the Ares launchers
will accelerate the development of technologies that are important for the economy and national security. The
advanced systems and capabilities required for space travel include power generation and storage, communica-
tions and navigation, networking, robotics, and improved materials, all of which could be used on Earth to meet
commercial and other national needs. As Shuttle activities begin to wind down, Shuttle personnel will find new,
challenging positions working on Constellation Systems development efforts, keeping this highly skilled segment
of America’s workforce productive and competitive. Constellation Systems also will provide a training ground for
the next generation of scientists and engineers who will realize the
Nation’s space exploration dreams.

Furthermore, Orion will serve as a public symbol of the Nation’s


continued commitment to space exploration, much as the
Shuttle has over the past 25 years. NASA anticipates that the
exploration initiatives will spark the public’s imagination and inspire
the Nation’s youth to pursue careers in science, technology, engi-
neering, and mathematics as a result of their renewed interest in
space.

Highlighting Achievements
During FY 2006, NASA continued preliminary design work and
On August 31, 2006, NASA announced that it
began systems testing, including heat shield tests at the Ames
would award to Lockheed Martin the contract
Research Center arc-jet facility. Johnson Space Center engineers to build the Orion Crew Exploration Vehicle,
built a full-scale mock-up of the command module, which will shown here in an artist’s rendering. Since July
be used to test systems in situ. NASA established an intra- 2005, NASA worked with two teams, Lockheed
agency CEV Smart Buyer Team to perform trade studies and design Martin and Northrop Grumman/Boeing, to do
analysis to help the CEV Project Office understand and verify the preliminary trade studies, requirements, and
design concepts in preparation for the August
appropriateness of the requirements incorporated into the CEV
2006 selection. (Lockheed Martin)
Phase II solicitation.

40 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

On August 31, after careful consideration of the submitted proposals, NASA awarded to Lockheed Martin the
contract to develop Orion—the first in over 30 years calling for the development of a new manned space vehicle.
Lockheed Martin will work with NASA to deliver the Orion vehicle by 2014.

NASA subjected a partial model of Ares I, including part of the upper stage, the spacecraft adapter, Orion, and the
launch abort system, to over 80 runs of wind tunnel tests at the Ames Research Center. Data collected during
these tests help engineers understand the aerodynamic characteristics of the vehicle, giving the designers insight
into the algorithms necessary for flight control software to control the vehicle during ascent. NASA also success-
fully completed preliminary tests of an augmented spark igniter, a critical engine component that ignites a mixture
of liquid hydrogen and liquid oxygen propellants while in-flight.

Throughout the fiscal year, NASA took small, but important


steps toward achieving Strategic Goal 4:
• In May, NASA selected the RS-68 engine to power the
core stage of the heavy-lift cargo launch vehicle, Ares V,
superseding NASA’s initial decision to use a derivative
of the Shuttle main engine. Studies examining life-cycle
cost showed the RS-68, which is the most powerful
liquid oxygen/liquid hydrogen booster in existence, to
be the best choice. The RS-68 currently is used in the
Delta IV launcher, the largest of the Delta rocket family.
• NASA assigned development tasks to each of the In March 2006, NASA engineers (from left) Paul
Centers: Espinosa and Tuan Truong, study a scale model of the
CEV under blue light to prepare the model for testing
o Ames Research Center is developing the thermal in the Ames Research Center’s Unitary Wind Tunnel
protection systems and information technology Complex. This test demonstrated the aerodynamic
systems for the spacecraft; properties of the heat shield design (the model is painted
with special, pressure-sensitive pink paint used in the
o Dryden Flight Research Center leads the abort flight testing). Additional tests conducted in the Ames arc-jet
test integration and operations; facility, which resembles a room-size blowtorch, tested
o Glenn Research Center manages the work on potential materials for the heat shield. (NASA)
Orion’s service module and the development of the
Ares I upper stage;
o Goddard Space Flight Center is responsible for communications, tracking, and support mechanisms;
o Jet Propulsion Laboratory leads planning for systems engineering processes related to operations develop-
ment and preparation;
o Johnson Space Center manages Constellation Systems and the astronaut corps and leads development
for the crew module;
o Kennedy Space Center is developing the ground systems for Constellation Systems and will process and
launch Orion and Ares;
o Langley Research Center leads the Launch Abort System integration;
o Marshall Space Flight Center manages all launch vehicle projects and launch vehicle testing; and
o Stennis Space Center tests the rocket propulsion systems.
In addition to the Orion development, Strategic Goal 4 includes development of a next-generation spacesuit
capable of supporting exploration. Engineers at Johnson Space Center are testing spacesuit configurations under
various scenarios, like an emergency “walk back” during which a crewmember would walk from a stalled rover to a
lunar lander or habitat. In June, Johnson Space Center conducted a walk back simulation where a NASA engineer
walked more than six miles on a treadmill wearing the Mark III Advanced Space Suit Technology Demonstrator
(see photo in Sub-goal 3F). Rigging connected to the spacesuit helped simulate different gravity levels, including

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 41


Engineers at Marshall Space Flight Center conduct a hot-fire test of
a scaled-down model of main injector hardware in July 2006. This
device will inject and mix liquid hydrogen and liquid oxygen propellants
in the main combustion chamber of the upper-stage rocket engine that
will be used in the Ares I Crew Launch Vehicle and the Ares V Cargo
Launch Vehicle. The hot-fire tests are part of efforts to investigate design
options for, and maximize performance of, the J-2X upper stage engine,
an updated version of the powerful J-2 engine used to launch the Saturn
V rocket upper stages during Apollo. The injector was fired horizontally
with varying fuel temperatures and different propellant mixtures for 10 to
20 seconds at a thrust of approximately 20,000 pounds. Data collected
during these tests will help engineers investigate design options for, and
maximize performance of the J-2X upper stage engine. (NASA)

lunar gravity. The goal was to determine if an astronaut could do a strenuous walk in the spacesuit and still be
able mentally and physically to work the hatch on the lander or habitat. The results provided useful guidance for
spacesuit modifications.

Confronting Challenges
Achieving Strategic Goal 4 will require careful management to keep the Constellation Systems Program within
budget and on schedule.

Another factor affecting achievement of Strategic Goal 4 is performance under Strategic Goals 1 and 2. The Space
Shuttle represents the biggest commitment in NASA’s budget. NASA must retire the Shuttle as soon as possible,
while also meeting the commitment to complete the ISS, to free up budget for Constellation Systems.

In preparation for the transition from Shuttle to Orion, NASA is studying options for transitioning workforce, facili-
ties, and assets from the Space Shuttle Program to Constellation Systems. If the transition is delayed, NASA could
face increased costs and the loss of skilled workers. Therefore, NASA is conducting trade studies and analyses
to understand more clearly the technical requirements for projects, space systems, and vehicle development and
testing to ensure that Orion and Ares I are operational no later than 2014.

Moving Forward
Now that NASA Centers have their assigned tasks, work on Orion, Ares I, and supporting systems can begin in
earnest. In FY 2007, NASA will conduct a System Design Review for all elements of Constellation Systems. A
successful review will allow the program to begin preliminary design work on additional projects. A Preliminary
Design Review of Orion, the Ares I, and the Exploration Communications and Navigation Systems project will also
be completed. In FY 2007, NASA also will conduct a Preliminary Design Review for a spacesuit that can be worn
during extravehicular activity.

42 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

Strategic Goal 5: Encourage the pursuit of appropriate


Cost of Performance
partnerships with the emerging commercial space (in millions)
sector. $44.00
NASA pursues collaborations that help expand the commercial space sector Responsible
and support NASA’s Mission. Of particular interest to NASA is the expansion Mission Directorates
of launch service providers. As the Space Shuttle nears retirement, NASA is
Exploration Systems
interested in obtaining International Space Station (ISS) cargo delivery and
return services provided by emerging companies. By helping them to expand
their services and increase their experience, NASA hopes to encourage the
growth of a competitive market that will help to reduce launch costs and provide NASA with access to new capa-
bilities. NASA hopes to stimulate the emerging U.S. entrepreneurial launch sector and accelerate the growth of the
commercial space industry by awarding prizes and intellectual property rights for achievements in creating space
technologies and systems.

NASA also is encouraging the emerging U.S. commercial space sector through more creative, less traditional
approaches. In 2006, NASA selected two emerging aerospace companies, Space Exploration Technologies and
Rocketplane–Kistler to demonstrate ISS cargo transportation services. Should they successfully demonstrate their
cargo transportation capabilities, they will be able to bid to provide cargo transportation services for the ISS after
Shuttle retirement. Since FY 2005, NASA has held prize competitions, called Centennial Challenges, for ground-
based demonstrations of breakthroughs in various aerospace technologies. Although there is no guarantee that
a breakthrough or winner will emerge from any particular prize competition, by encouraging participation, NASA
hopes to encourage private sector breakthroughs across a broad range of technologies and designs.

Reaping Benefits
Since NASA’s creation in 1958, the commercial sector has been the Agency’s partner in space exploration. NASA
purchases launch vehicles for robotic missions from the commercial sector. NASA works with commercial part-
ners to develop communication and navigation systems, build spacecraft, and design spacesuits. Along the way,
the commercial space sector has grown into a multi-billion-dollar industry that delivers services, such as satellite
television and global navigation, to the public and contributes to a strong U.S. economy. Historically, several large
corporations have driven the commercial space industry, but now start-up ventures are pushing the sector into
new areas. With the 2004 award of the first Ansari X–Prize—to Mojave Aerospace Ventures for flying its sub-orbital
vehicle to more than 62 miles altitude twice in two weeks—and other ongoing private space efforts, the poten-
tial for the commercial space sector to engage new markets is stronger than ever. In return for supporting both
established and emerging commercial ventures, NASA gains access to a wider range of technologies and services
at more competitive prices.

Highlighting Achievements
The emerging commercial space sector continued to grow in FY 2006 with the successful launch in July of Bigelow
Aerospace’s Genesis I inflatable Earth-orbit module, a proof-of-concept mission to show the feasibility of using
inflatable structures to serve as modules for future space stations and habitats. Inflatables are attractive for space
exploration because they offer large volume, but are easier to launch than rigid structures because they weigh far
less and pack up smaller. Bigelow will evolve the Genesis technology into a larger, more capable Nautilus inflatable
structure.

The technology used for Genesis I originated in the 1990s at the Johnson Space Center as part of NASA’s
TransHab project to create an inflatable module for the ISS. Although NASA discontinued the TransHab project,
technology development continued when NASA and Bigelow signed an exclusive licensing agreement transfer-
ring the technology to Bigelow. A second license gave Bigelow access to NASA’s radiation shielding technology.
Bigelow and NASA continue to collaborate to evolve inflatable technology.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 43


The multi-day Genesis I mission yielded a second
benefit for NASA because the inflatable carried the Bigelow Aerospace used
inflatable technology
NASA Genebox, a prototype microlaboratory that developed for NASA’s
may fly on small-scale satellites (called nanosats) TransHab module, shown
in the near future. The ability to perform research here (top photo) dur-
in such small-scale laboratories could mean more ing testing at Johnson
experiments launching for less money and in less time Space Center, as the
than costly larger counterparts. Although this flight of basis for the company’s
Genesis project. Genesis
the NASA Genebox focused on testing the microlab’s I, shown here (bottom) in a
systems and NASA’s procedures for working with the photo taken by a camera
hardware, a later version of the Genebox will track and mounted to the inflatable
analyze DNA changes in living things while in space. as it successfully orbited
Earth in August 2006, is
The Exploration Systems Mission Directorate estab- a one-third-scale mod-
lished the Commercial Crew and Cargo Program el meant to shake-out
Office at Johnson Space Center and assigned the problems. Bigelow will
fly a follow-up mission,
office responsibility for managing NASA’s Commercial Genesis II, in early 2007.
Orbital Transportation Services Projects. The program (top: NASA; bottom:
office released a final Commercial Orbital Transporta- Bigelow Aerospace)
tion Services demonstration announcement to solicit
proposals for the initial commercial ISS transportation
demonstration phase. On August 18, 2006, NASA
entered into agreements with Space Exploration
Technologies and Rocketplane–Kistler to demonstrate
the vehicles, systems, and operations needed to
re-supply, return cargo from, and transport crew to
and from the ISS.

Confronting Challenges
One of NASA’s challenges is to expand the Agency’s base of launch services providers to include emerging U.S.
companies. The current requirements for launching NASA payloads are designed to protect NASA’s investment in
Agency missions. NASA payloads are often one-of-a-kind and of high value, so it is imperative that all reasonable
measures be taken to assure launch success. The NASA Launch Services Program is exploring ways to open the
bidding process to a larger number of launch providers, lowering launch prices and helping emerging launch pro-
viders gain experience to compete more successfully, while protecting NASA’s—and the country’s—investment in
valuable mission assets. The Commercial Orbital Transportation Services projects are a new approach to providing
launch services for the ISS. But before NASA will purchase these services, the companies will have to demonstrate
the required capabilities.

Moving Forward
In FY 2007, the Innovative Partnerships Program, the Mission Support Office that manages NASA’s partnership,
technology transfer, and space product development efforts, will concentrate on integrating its business areas
so that they better complement and leverage each other. Program management also will develop additional
performance metrics (see Part 2 for the program’s FY 2006 performance metrics) and build civil servant core
competencies.

The Exploration Systems Mission Directorate currently is working with commercial partners to demonstrate cargo
delivery and return capabilities to support ISS cargo re-supply once the Shuttle retires. Partner demonstrations are
on track to be able to provide operational cargo services to the ISS beginning in 2010. Additionally, NASA’s com-
mercial partners have agreed to the budgets and schedules that will allow bringing an optional crew transportation
capability on-line after initial successful cargo demonstrations. The Space Operations Mission Directorate, which
acquires commercially available expendable launch vehicles for the Agency’s mission needs, plans to purchase
crew and cargo launch services for the ISS from U.S. commercial launch providers when they become available.

44 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

NASA wants to obtain these services as soon as possible so


that Shuttle flights can focus on delivering large construc-
tion elements and facilities to the ISS. The commercial flights
would augment launch services currently provided by the
Russian Space Agency’s Soyuz and uncrewed Progress
vehicles, enabling the partners to increase the number of
crewmembers aboard the International Space Station. The
Space Operations Mission Directorate also will continue
advanced planning to support NASA’s evolving launch require-
ments for lunar exploration.

In FY 2007, NASA and Agency partners will conduct several


Centennial Challenges competitions:
A team demonstrates their concept for a robotic
• The Beam Power Challenge, to improve the efficiencies climber, which could climb a ribbon, powered only
and power densities of wireless power transmission; by the beam from an industrial searchlight during
the 2005 Beam Power Challenge, held in October.
• The Lunar Lander Challenge, to develop the necessary Although none of the 11 teams won the challenge,
technologies for reusable transport between low lunar the University of Saskatchewan Space Design Team
orbit and the lunar surface; had the farthest climb, approximately 40 feet. Par-
ticipants will meet again in October 2006 to com-
• The Tether Challenge, to stimulate the development of new pete for the Beam Power Challenge prize offered by
high-strength, low-weight materials; NASA’s Centennial Challenges Program. (NASA/
K. Davidian)
• The Astronaut Glove Challenge, to make pressurized
gloves less fatiguing and more dexterous for the astro-
nauts’ hands;
• The Regolith Excavation Challenge, promoting development of new technologies to excavate lunar soil (also
known as regolith); and
• The Personal Air Vehicle Challenge, encouraging technology developments that increase safety, usability, and
capacity of general aviation aircraft.
The on-going Moon Regolith Oxygen (MoonROx) Challenge, to develop technologies for technology demonstra-
tion of high extraction rates of breathable oxygen from simulated lunar soil, is open throughout all of FY 2007 and
expires in June 2008.

NASA has restructured the Centennial Challenges to ensure that some of these competitions will be conducted on
an annual basis, through the year 2011.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 45


Strategic Goal 6: Establish a lunar return program
Cost of Performance
having the maximum possible utility for later missions (in millions)
to Mars and other destinations. $665.26
NASA’s Vision for the future is clear. America’s robotic and human explorers Responsible
will venture farther into the solar system than ever before. The first stop on Mission Directorates
this exciting voyage will be the Moon, where robots, then humans, will explore
Exploration Systems
the lunar surface in depth to supplement the work done by their Apollo prede-
Science
cessors. Early robotic missions will survey and characterize potential landing
Space Operations
sites, as well as mining sites from which astronauts later can process lunar
resources. Longer-duration lunar missions will enable astronauts to test new
technologies for communications, computing, navigation, power generation,
propulsion, habitation systems, and in-space construction and servicing processes. NASA and the Agency’s part-
ners are developing these technologies today to support achieving the Vision for Space Exploration tomorrow.

Reaping Benefits
NASA and the Agency’s partners transfer advanced space exploration systems and capabilities—power
generation, communications, computing, robotics, and improved materials from space exploration research and
execution—to the commercial sector to serve public, national, and global needs. In the past, technologies devel-
oped for space exploration have yielded ground-based applications such as non-polluting solar energy systems,
advanced batteries for laptop computers and cell phones, and fuel cells for electric vehicles.

Historically, space exploration has inspired industry, academia, and individual researchers to redefine what is
“possible.” NASA’s Vision to expand the limits of robotic and human exploration through a technically ambitious
portfolio of programs should provide even greater challenges and opportunities for personal development and
future economic growth to NASA’s extended family of visionary partners.

The activities under Strategic Goal 6 lay the groundwork for NASA’s future human space exploration goals. Through
the successful completion of these activities, NASA will have the technologies and capabilities to support humans
on the Moon by the time the Orion Crew Exploration Vehicle and the Ares launch vehicles are fully operational.
Along the way, these activities will benefit other efforts across NASA: new power generation and nuclear technolo-
gies will help future space exploration missions; autonomous systems and integrated systems health management
can make air travel safer and more efficient; and improved space communications enable better data delivery to
and from the Space Shuttle, the International Space Station, and robotic spacecraft.

Highlighting Achievements
In 2006, the Exploration Systems Mission Directorate initiated development of a multinational exploration strat-
egy. Working with the worldwide community of space agencies, academia, and private sector stakeholders, the
Exploration Systems Mission Directorate defined six primary lunar exploration themes that provide the high-level
rationale for lunar exploration and a detailed set of over one hundred lunar exploration objectives. The Exploration
Systems Mission Directorate and the Office of External Relations are engaged in discussions with 13 international
space agencies to understand each agency’s unique interests related to lunar exploration and to determine where
NASA’s interests overlap. The Exploration Systems Mission Directorate also is engaged in discussions with the
private sector to understand the role that these organizations may play in future lunar exploration efforts.

During FY 2006, NASA established the Lunar Precursor and Robotic Program (previously called the Robotic Lunar
Exploration Program) Office at Marshall Space Flight Center. The program will conduct a series of missions that
support the overall lunar exploration effort, and may include missions that will investigate radiation protection and
dust mitigation technologies.

In 2006, the Lunar Reconnaissance Orbiter (LRO) mission passed the Preliminary Design and Confirmation
Reviews, where an external team reviewed plans for systems, software, and vehicle configuration and determined
that the project should progress forward to the development stage. To take advantage of the launch vehicle’s ability

46 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Overview

to carry two spacecraft, NASA also selected a secondary lunar mission, the Lunar Crater Observation and Sensing
Satellite (LCROSS), to launch with LRO.

NASA is conducting a multi-Center effort to develop robotic


vehicles capable of crossing a wide variety of terrains. As part of
this effort, the Jet Propulsion Laboratory developed the All-Terrain
Hex-Legged Extra-Terrestrial Explorer (ATHLETE). As the name
suggests, ATHLETE is tough and flexible, able to roll over smooth
terrain similar to the Apollo landing sites or walk (the wheels freeze
to serve as “feet”) over extremely rough or steep terrain and sandy
grades. On smooth terrain, ATHLETE can move more than a 100
times the speed of its Mars Exploration Rover cousins. ATHLETE
can support robotic or human missions on the Moon by load- Engineers at the Jet Propulsion Laboratory con-
ing, transporting, manipulating, and depositing payloads almost duct a docking experiment with two ATHLETE
rovers. The legs move independently and offer
anywhere. It can dock or mate with other devices, including re- six degrees of freedom for greater manipulation
fueling stations, excavation equipment, and other ATHLETE rov- and balance. The robot responds to voice and
ers to provide increased payload capacity. In FY 2006, the Jet gestures, enabling suited astronauts to direct it
Propulsion Laboratory demonstrated ATHLETE’s capabilities in easily. ATHLETE’s shape allows it to fold up for
desert field tests and conducted autonomous tests, during which compact stowage, and it can deploy itself at the
two ATHLETE rovers docked together. destination. (NASA/JPL–Caltech)

Confronting Challenges
Currently, the major risk for the LRO mission is the schedule to meet the milestone to launch in 2008 set forth in the
Vision for Space Exploration. Another schedule-related challenge is that LCROSS, as a design-to-cost mission,
must stay on schedule to launch with LRO and to stay within its proposed cost.

Moving Forward
In November 2006, the Exploration Systems Mission Directorate plans to conduct the Critical Design Review for
LRO, when NASA validates the LRO spacecraft design. If the design passes review, NASA’s mission partners will
begin fabricating the spacecraft. The mission currently is scheduled to launch in October 2008.

NASA will pursue other activities in support of Goal 6 starting in FY 2007:


• The Exploration Systems Mission Directorate is conducting a lunar architecture study to identify the systems
needed for lunar surface exploration and to determine when the systems must be available to meet NASA’s
schedule. As part of this, the Exploration Systems Mission Directorate will determine the technology require-
ments for power, in-situ resource utilization, and autonomous systems.
• NASA engineers will demonstrate four processes for producing oxygen from lunar soil. This is an important
step toward in-situ resource utilization, a necessary capability for long-duration lunar exploration.
• NASA will continue to test in a series of field campaigns advanced robotic systems working in collaboration with
suited astronauts.
• NASA engineers will demonstrate advanced storage of cryogenic propellants to support long-duration orbiting
of the Earth departure stage and the lunar lander.
• NASA engineers also will initiate non-nuclear, subscale tests of fission power conversion subsystems, as part of
a larger effort to develop the fission surface power technology demonstration unit. The results of these activi-
ties would provide performance and cost data and reduce technical risk and cost uncertainties associated with
the design and development of a nuclear flight power system.
• NASA researchers will begin a new project to investigate the effects of lunar dust on surface systems and
humans. The researchers will use the results to develop techniques for minimizing dust accumulation.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 47


48 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Financial Overview

Financial Statements and Stewardship


NASA’s financial statements, which appear in Part 3: Financials of this Performance and Accountability Report,
are unaudited. The statements provide information regarding the financial position and results of the Agency’s
operations. Agency management is responsible for the integrity and objectivity of the financial information in these
statements.

NASA prepared the financial statements and financial data presented throughout this Performance and
Accountability Report from the Agency’s financial management system and other Treasury reports in accordance
with the requirements and formats prescribed by the Office of Management and Budget. The Agency’s financial
statements, notes, Required Supplementary Information, and Required Supplementary Stewardship Information
are provided in Part 3: Financials of this Report.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 49


Overview of Financial Position
The following table provides summary financial information for fiscal years 2006 and 2005. Significant changes in
balances are discussed in the sections that follow.

(Dollars in Millions)
Change Unaudited Unaudited
2006 Over 2005 FY 2006 FY 2005
Condensed Balance Sheet Data
Fund Balance with Treasury 18% $ 9,585 $ 8,146
Accounts Receivable -6% 185 196
Inventory and Related Property, Net -23% 2,330 3,019
Property, Plant, and Equipment -5% 33,193 34,926
Other Assets 0% 17 17
Total Assets -2% $ 45,310 $ 46,304

Accounts Payable -13% $ 1,848 $ 2,132


Environmental and Disposal 8% 893 825
Other Liabilities 9% 572 526
Total Liabilities -5% $ 3,313 $ 3,483

Unexpended Appropriations 31% $ 6,981 $ 5,318


Cumulative Results of Operations -7% 35,016 37,503
Total Net Position -2% $ 41,997 $ 42,821

Total Liabilities and Net Position -2% $ 45,310 $ 46,304

Intragovernmental Net Costs 10% $ 403 $ 367


Gross Costs with the Public 16% 17,268 14,927
Less: Earned Revenues from the Public -67% 29 88
Total Net Cost of Operations 17% $ 17,642 $ 15,206

Assets
NASA’s Consolidated Balance Sheet shows that the Agency had total assets of $45.3 billion at the end of fiscal year
2006, compared with $46.3 billion in 2005. This represents a net decrease in assets of $994 million (2.1%). The
decrease in net assets is a result of a decrease in the Agency’s net General Property, Plant and Equipment (PP&E),
due largely to the impact of current period depreciation.

NASA’s Inventory and Related Property decreased by $689 million (22.8%) in FY 2006 as a result of a reclassifi-
cation of certain reusable materials to PP&E. These items are in support of NASA’s International Space Station,
Shuttle and Hubble Space Telescope programs.

NASA’s General PP&E, at $33.2 billion, represents 74% of the Agency’s total assets as of September 30, 2006.
This is a decrease of $1.7 billion (5%) from 2005 General PP&E balances. This decrease is primarily related to a

50 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financial Overview

decrease in net Theme Assets. Current period Theme Assets increased by $1.5 billion in 2006, offset by an
increase in accumulated deprecation for Theme Assets of $3.4 billion. This resulted in a decrease in the net (book
value) of the Agency’s Theme Assets by $1.9 billion (12%).

Theme Assets, at $14.5 billion, are the largest


Major Assets By Type (Dollars in Millions)
component of the Agency’s General PP&E, repre-
As of September 30, 2006
senting 44% of General PP&E. Work-in-Process,
Fund Balance with
at $13.2 billion, is the next largest component Property, Plant, & Treasury
of total General PP&E (40%). Work-in-Process Equipment, Net $9,585 (21.2%)
reflects the cost of equipment and facilities cur- $33,193 (73.3%)
Accounts
rently under construction. Total Work-in-Process
Receivable
decreased by $203 million (1.5%) in FY 2006. $185 (0.4%)

NASA’s contractors hold over 24% of the


Agency’s General PP&E. Difficulties substantiat-
Inventory and
ing the value of contractor-held General PP&E
Related
have contributed to a continuing material weak- Property, Net
ness identified by NASA’s independent public $2,330 (5.1%)
auditors. NASA has developed improved internal Total Assets $45,310 (amount includes other assets of $17 million)
controls for all types of PP&E. Those improve- Source: Consolidated Balance Sheet
ments will be implemented throughout 2007.

As one of those improvements, NASA is consid-


ering a change in its accounting policy for Theme General PP&E (Dollars in Millions)
Assets to reclassify some costs previously cat- As of September 30, 2006
egorized as General Property, Plant & Equipment Land, $122 (0.4%) Structures, Facilities, and
(PP&E) as Research and Development (R&D) Leasehold Improvements
expenses. In FY 2006, NASA drafted a policy $1,570 (4.7%)
to implement this change and requested that Work-in Process
FASAB clarify the accounting standards the $13,228 (39.9%)
Agency used as the basis for the draft change. Theme Assets
$14,451 (43.5%)
NASA anticipates a response from the Federal
Accounting Standards Advisory Board (FASAB)
Internal Use
in FY 2007. Software and
Development
NASA’s Fund Balance with Treasury (FBWT), at $90 (0.3%) Equipment, $3,732 (11.2%)
$9.6 billion, accounts for 21 % of the Agency’s
total assets. FBWT represents the Agency’s Total General PP&E $33,193
“cash” account, and includes funds available for Source: Notes to FY 2006 Financial Statements, Note 7
disbursement in support of NASA programs and
projects.

Liabilities
The Agency had total liabilities of $3.3 billion as of September 30, 2006. This represents a decrease in total
liabilities from fiscal year ends’ 2006 to 2005 by $170 million. NASA’s largest liability is its Accounts Payable. This
balance is consistent with the accrued payables necessary to support NASA operations. NASA is compliant with
all prompt payment regulations and is timely in its vendor payments, with only 0.001% of interest penalties paid on
total non-credit card invoices. This compares favorably with the government standard of no more than 0.02%.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 51


Environmental and Disposal liabilities represents
estimated cleanup costs from NASA operations Major Liabilities By Type (Dollars in Millions)
As of September 30, 2006
resulting from actual or anticipated contamination
from waste disposal methods, leaks, spills, and Other Liabilities
other past activity that created a public health or $572 (17.3%)
environmental risk. This estimate could change
in the future due to the identification of addition- Accounts Payable
$1,848 (55.8%)
al contamination, inflation, deflation, changes in
technology or applicable laws and regulations.
The estimate will also change through ordinary
liquidation of these liabilities as the cleanup pro-
gram continues into the future. The estimate Environmental and
represents the amount that NASA expects to Disposal
$893 (26.9%)
spend in the future to remediate currently known
contamination. NASA has implemented new Total Liabilities $3,313
procedures and tools to improve the accuracy Source: Consolidated Balance Sheet
and consistency of environmental cleanup esti-
mates. Estimates increased this year from last
year by 8%, from $825 million to $893 million.

Ending Net Position


NASA’s Net Position as of September 30, 2006, reported on the Consolidated Balance Sheet and the Consolidated
Statement of Changes in Net Position, was $41.9 billion, a $824 million (1.9%) decrease from 2005. Net Position
is the sum of Unexpended Appropriations and Cumulative Results of Operations.

NASA’s Unexpended Appropriations increased by 31.3% in 2006, to $6.9 billion from $5.3 billion. The increase in
Unexpended Appropriations is due principally to a delay in receiving this year’s full apportionment that resulted in
corresponding delays in incurring costs and disbursements.

Results of Operations
NASA’s total sources of funds available for 2006 operations were $20.1 billion. This compares with total sources of
funds in FY 2005 of $20.2 billion, a decrease of 0.6%. Unobligated Balances, Brought Forward were $860 million
(27.8%) less in 2006 than in 2005, reflecting the stabilization of Agency programs and projects related to the Vision
for Space Exploration. NASA’s Budgetary Authority increased by $408 million (2.3%) in 2006, to $17.7 billion.

The Consolidated Statement of Net Cost presents


the Agency’s gross and net costs by major busi- Uses of Funds (Dollars in Millions)
For the Fiscal Year Ended September 30, 2006
ness lines. The net cost of operations is the gross
(total) cost incurred by the Agency, less any earned Space Operations
revenue from other government organizations or Science
$7,696 (43.6%) $6,280 (35.6%)
from the public. The Agency revised its account-
ing structure for 2006 to reflect the Agency’s major
business lines. This enhances the Agency’s abil-
ity to track and assign costs by capturing them
in the same structure used to manage the work,
improving the ability to analyze and report on per-
formance. Due to this change, it is not possible to
Exploration Systems
generate a comparable Consolidated Statement Aeronautics Research
$2,616 (14.8%)
of Net Cost for 2005. $1,050 (6.0%)

The Agency’s net cost of operations for 2006 was Total Uses of Funds $17,642
Source: Consolidated Statement of Net Cost
$17.6 billion. Space Operations (including NASA’s

52 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financial Overview

Shuttle and International Space Station programs), at $7.7 billion, and Science, at $6.3 billion, were the Agency’s
largest business lines in 2006.

Limitation of the Financial Statements


These financial statements have been prepared to report the financial position and results of operations for NASA
pursuant to the requirements of Chapter 31 of the United States Code section 3515(b). While these statements
have been prepared from the books and records of the Agency in accordance with U.S. generally accepted
accounting principles (GAAP) for Federal entities and the formats prescribed by the Office of Management and
Budget, these statements are, in addition to the financial reports, used to monitor and control the budgetary
resources that are prepared from the same books and records. These statements should be read with the realiza-
tion that they are for a component of the U.S. government, a sovereign entity.

Key Financial-Related Measures


Below is a table of key financial measures, as of September 30, 2006, consistent with the Chief Financial Officers
(CFO) Council financial metrics.

Government-wide Performance
Government- Standards
Measure, Frequency, NASA NASA wide Fully Minimally
and Importance Sept. 2006 Sept. 2005 July 20061 Successful Successful Unsuccessful
Measure: Fund Balance With Trea-
sury—Net Percentage Unreconciled
Frequency: Monthly > 2% to
0.07% 0.7% 0.124% < = 2% > 10%
Importance: Smaller reconciliation < = 10%
differences indicate greater financial
integrity
Measure: Percentage of Amount in
Suspense (Absolute) Greater than 60
Days Old
> 10% to
Frequency: Quarterly 58% 13.5% 60.9% < = 10% > 20%
Importance: Timely reconciliation
< = 20%
supports clean audits and accurate
financial information
Measure: Percentage of Delinquent
Accounts Receivable from Public Over
180 Days
> 10% to
Frequency: Quarterly 8.75% 5.8% 13.63% < = 10% > 20%
Importance: Actively collecting debt
< = 20%
improves management accountability
and reduces U.S. borrowing
Measure: Percentage of Electronic
Payments to Vendors
Frequency: Monthly 99.4% 99.6% 95.61% > = 96% > = 90% < 90%
Importance: Electronic funds transfers
reduces cost
Measure: Percentage of Non-Credit
Card Invoices Paid on Time
< 98% to
Frequency: Monthly 99.1% 95.0% 96.06% > = 98% < 97%
Importance: Timely payment reduces
> = 97%
interest charges

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 53


Government-wide Performance
Government- Standards
Measure, Frequency, NASA NASA wide Fully Minimally
and Importance Sept. 2006 Sept. 2005 July 20061 Successful Successful Unsuccessful
Measure: Percentage of Interest
Penalties Paid on Total Non-Credit
Card Invoices
Frequency: Monthly > .02% to
0.001% 0.001% 0.014% < = .02% > .03%
Importance: Smaller interest pay- < = .03%
ments show that bills are paid on time
and allows funds to be used for their
intended purpose
Measure: Travel Card Delinquency
Rate—Individually Billed Accounts
Frequency: Monthly > 2% to
2.5% 2.5% 3.16% < = 2% > 4%
Importance: Reducing outstanding < = 4%
travel card balances helps increase
rebates to agencies
Measure: Travel Card Delinquency
Rate—Centrally Billed Account
Frequency: Monthly > 0% to
0.0% 0.0% 1.17% 0% > 1.5%
Importance: Reducing outstanding < = 1.5%
travel card balances helps increase
rebates to agencies
Measure: Purchase Card Delinquency
Rate
Frequency: Monthly
> 0% to
Importance: Reducing outstanding 0.0% 0.0% 0.98% 0% > 1.5%
purchase card balances helps increase
< = 1.5%
rebates to agencies and reduces
interest payments

1
July 2006 data was the latest available for government-wide reporting from the Chief Financial Officer’s Council’s Metric Tracking
System at publication of this report.

Overall, for FY 2006, the Agency’s financial metrics improved due largely to the increased attention received from
Agency and Center CFO offices and overall improvements to NASA’s financial management internal controls includ-
ing monthly reporting to the Agency CFO from each Center CFO.

54 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Systems, Controls,
& Legal Compliance

Overview
The Federal Managers’ Financial Integrity Act (FMFIA) of 1982 requires federal agencies to establish “controls that
reasonably ensure that (i) obligations and costs are in compliance with applicable law; (ii) funds, property, and other
assets are safeguarded against loss, unauthorized use or misappropriation; and (iii) revenues and expenditures
applicable to agency operations are properly recorded and accounted for to permit the preparation of accounts and
reliable financial and statistical reports and to maintain accountability over the assets.” In addition, the agency head
annually must evaluate and report on the control and financial systems that protect the integrity of federal programs
(Section 2 and Section 4 of FMFIA respectively).

Section 2 of FMFIA requires the head of each agency to submit a statement on whether there is reasonable
assurance that the agency’s controls are achieving their intended objectives and, as applicable, report on material
weaknesses in the agency’s controls. A separate statement on the effectiveness of internal controls over financial
reporting is included as a subset of the overall assurance statement.

Section 4 of FMFIA requires a statement on whether the agency’s financial management systems conform to gov-
ernment-wide requirements. In addition, the Federal Financial Management Improvement Act (FFMIA) of 1996
requires the agency head to evaluate and determine whether the financial management systems substantially
comply with its requirements. The systems also must comply with any other applicable laws.

The Administrator’s statement of assurance is based on information gathered from a variety of sources, including
the Administrator’s personal knowledge of NASA’s day-to-day operations, existing controls, management program
reviews, and other internal reports. If the Agency’s systems do not comply with the FMFIA, the assurance statement
must identify any material weaknesses and include NASA’s corrective action plan to address those weaknesses.

This year, NASA began several initiatives to improve internal accounting and administrative control processes.
As part of this effort, NASA’s Office of the Chief Financial Officer established an Office of Quality Assurance to
strengthen and improve both internal controls and NASA compliance with financial management policy, FMFIA, and
requirements from the Office of Management and Budget (OMB). Personnel from the Office of Quality Assurance
conducted on-site assessments to document and test key internal controls for compliance with FMFIA and OMB
Circular A-123, Appendix A: Internal Control over Financial Reporting.

NASA further improved the Agency’s internal accounting and administrative controls processes by taking the follow-
ing actions: developing and distributing a new policy on internal controls; conducting training on the requirements
and implementation of OMB Circular A-123, Management’s Responsibility for Internal Control; assessing and test-
ing financial statement line items and related processes; and analyzing 120 identified risks as supporting evidence
for the Administrator’s statement of assurance. The Officials-in-Charge of NASA Headquarters offices and the
Agency’s Center Directors identified these risks by submitting individual statements of assurance for their respective
organizations to the NASA Administrator.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 55


A NASA Headquarters team evaluated the 120 risks identified in the 28 statements of assurance and developed
recommendations for consideration by the Operations Management Council, one of NASA’s three governing bod-
ies that provide senior-level oversight of NASA’s operations. The Operations Management Council holds an annual
meeting to confirm the deficiencies in Agency processes that will be reported as material weaknesses. This year,
the Council recommended that two previously reported material weaknesses—Space Shuttle Return to Flight and
Financial Management Data Integrity—be closed out; two previously reported material weaknesses—Asset Man-
agement and Financial Management System—continue to be reported as weaknesses; and Information Technology
Security be raised from an internally tracked deficiency to an externally reported material weakness.

56 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Systems, Controls, & Legal Compliance

Management Assurances

November 15, 2006

NASA management is responsible for developing and maintaining effective internal controls and financial manage-
ment systems that meet the objectives of the Federal Managers Financial Integrity Act (FMFIA). Based on the results
of our FY 2006 assessment of the effectiveness and efficiency of operations, and compliance with applicable laws
and regulations in accordance with OMB Circular A-123, Management’s Responsibility for Internal Control, I am able
to submit a qualified statement of assurance that NASA’s internal controls and financial management systems meet
the objectives of FMFIA. This assessment identified two material weaknesses, Asset Management and Information
Technology Security, reported under Section 2 of FMFIA, and a third material weakness, Financial Management Sys-
tem, reported as a non-conformance under Section 4 of FMFIA. In FY 2006, NASA closed two previously reported
material weaknesses: Space Shuttle Return to Flight and Financial Management Data Integrity. (A summary of the
weaknesses and corrective action plans follow this statement.) Other than these exceptions, the Agency found no
other material weaknesses in the design or operations of internal controls.

NASA also conducted an assessment focused on the effectiveness of internal control over financial reporting,
which includes safeguarding of assets and compliance with applicable laws and regulations, in accordance with
the requirements of Appendix A of OMB Circular A-123. NASA is taking a multi-year approach toward achieving
compliance through the NASA Financial Management Internal Control (FMIC) Plan. This statement reflects the sta-
tus of internal control over financial reporting for four significant line items as of June 30, 2006: Property, Plant, and
Equipment; Fund Balance with Treasury; Material and Supplies; and Unfunded Environmental Liabilities. Based on
the results of this evaluation, NASA identified one material weakness—Financial Management System—related to
internal control over financial reporting. Other than this exception, the Agency found no additional material weak-
nesses in the design or operation of the internal controls over financial reporting. Due to the identified weakness and
the scope of our assessment for FY 2006, NASA is only able to provide a qualified statement of assurance that the
Agency’s internal controls over financial reporting were operating effectively as of June 30, 2006.

In accordance with the Federal Financial Management Improvement Act (FFMIA), NASA management is respon-
sible for implementing and maintaining financial management systems that substantially comply with federal
systems requirements, applicable federal accounting standards, and the U.S. Government Standard General Ledger
(SGL) at the transaction level. Due to several remaining corrective actions defined in the Agency’s 2005 Corrective
Action Plan, NASA’s financial management systems are not substantially compliant with the requirements of the Act
as of September 30, 2006.

As explained in the auditor’s report in Part 3: Financials, NASA’s independent auditors were unable to render an
opinion on our FY 2006 financial statements and issued a disclaimer of opinion. Therefore, I cannot provide rea-
sonable assurance that the financial data in this report are complete and reliable. As we face the many challenges
ahead of us, we will focus on bringing NASA’s financial management system into compliance.

Michael D. Griffin
Administrator

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 57


Corrective Action Plan
New Material Weakness
Information Technology (IT) Security
FMFIA Section 2 Weakness
Responsible Official: Chief Information Officer

Description: NASA’s IT Security Program needs more effective implementation, monitoring, enforcement, verifica-
tion, and validation. NASA’s policy and procedures are not consistent with new OMB directives, and the Agency’s
systems are noncompliant with the Federal Information Security Management Act of 2002. This deficiency affects
mission accomplishment by compromising the integrity, availability, and confidentiality of mission critical data. The
operational efficiency of the Agency also is hampered by the inconsistent application of security solutions at different
Centers. If this weakness goes unchecked, mission resources may have to be reallocated to bring the Agency’s IT
systems into compliance.

Corrective Action Plan: NASA has been improving IT security for the past three years through a corrective action
plan that made changes to the Agency’s IT security policies and requirements. In FY 2006, NASA updated and dis-
tributed a new NASA IT security policy, established standard operating procedures to meet Agency requirements,
and updated NASA’s IT security training and certification programs. Despite these changes, recent IT security
incidents and Office of Inspector General audit results revealed that the same problems still exist. Therefore, in
FY 2007, NASA will: establish independent methods for verifying and validating processes related to IT security;
create an organizational structure that will assure consistency in the way that Centers implement new IT security
processes; and, revise IT security clauses for use in NASA contracts.

Continuing Material Weaknesses


Asset Management
FMFIA Section 2 Weakness
Responsible Official: Chief Financial Officer

Description: NASA’s lack of proper management controls has resulted in inconsistent financial recording prac-
tices contributing to misstated asset values and period expenses. Therefore, NASA needs to improve the Agency’s
management controls for the financial accounting and reporting of NASA owned Property, Plant, and Equipment;
materials; space parts; and other assets. The Agency also needs to improve accounting for contractor-held
property.

Corrective Action Plan: The Agency’s strategy for addressing this material weakness is to align NASA’s poli-
cies, processes, and systems with published accounting standards and appropriate accounting standards-setting
organizations. As part of this strategy, NASA revised the Agency’s asset capitalization policy (currently under review
by the Federal Accounting Standards Advisory Board). NASA also used working groups to identify solutions and
implementation plans for process and system gaps between current and desired business processes. In addition,
the Agency implemented a new Procurement Information Circular to improve accounting for property furnished to
contractors, including transfers, retirement, and recovery of government property.

Financial Management System


FMFIA Section 4 Weakness
Responsible Official: Chief Financial Officer

Description: In FY 2003, NASA implemented the Core Financial Module of the Integrated Enterprise Management
System. The Core Financial Module replaced all disparate Center-level accounting systems, the NASA Head-
quarters accounting system, and approximately 120 ancillary systems. However, NASA management identified

58 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Systems, Controls, & Legal Compliance

significant errors in the data produced by Core Financial Module beginning in September 2003 as a result of
problems in the conversion effort and system configuration. Limitations in Core Financial Module software still
require the implementation of compensating controls and systems, further complicating the resolution of this weak-
ness.

Corrective Action Plan: NASA continues to develop and implement procedures for identifying and validating the
Agency’s financial data and processes. In FY 2006, these efforts included aligning internal controls with authorita-
tive guidance and implementing automated financial system functions to complement process changes. Specific
progress toward improving this material weakness included:
• Developing and distributing a monthly schedule with due dates generated by a cross-Agency task team for data
processing, reconciliations, verifications, feedback, and reports;
• Performing periodic controls reviews and reconciliations at all Centers for 23 specific activities, after which each
Center developed a corrective action plan (monitored monthly by Headquarters) to assure the timely resolution
of anomalies;
• Completing financial management internal control assessments and testing for four significant accounts (Fund
Balance with Treasury; Property, Plant, and Equipment; Material and Supplies; and Environmental Liabilities) in
accordance with the NASA Financial Management Internal Control Plan. In June 2006, NASA updated and
submitted this plan to OMB;
• Reviewing, validating and redesigning NASA’s financial statements to ensure accuracy of reporting and consis-
tency with the requirement of OMB Circular A-136, Financial Reporting Requirements;
• Producing monthly financial statements directly from the Core Financial system within 30 days after the closing
of each period. This process included documenting data anomalies or corrections and preparing of statement
analyses; and
• Modifying the Agency’s Statement of Net Cost to provide a breakdown of net costs by major lines of business,
consistent with OMB Circular A-136.

Closed Items
Space Shuttle Return to Flight
FMFIA Section 2 Weakness

Responsible Official: Associate Administrator for Space Operations Mission Directorate

Description: The loss of the Space Shuttle Columbia in 2003 revealed a material weakness centered on loss of
control and enforcement of NASA’s standards of technical excellence, safety, teamwork, and integrity.

Corrective Action Plan: NASA established a formal Return to Flight (RTF) Planning Team to manage all aspects
of a safe return to flight, including complying with the recommendations of the Columbia Accident Investigation
Board. The Space Flight Leadership Council, co-chaired by the Associate Administrator for Space Operations and
the Deputy Chief Engineer for Independent Technical Authority, assessed the options and recommendations from
the RTF Planning Team. Through this process, NASA identified the technical causes and systemic cultural, organi-
zational, and managerial issues associated with the Columbia accident. NASA then addressed the deficiencies by
implementing a governance structure that includes forums for open discussions of technical and safety issues.

Following the completion of major test flight objectives on STS-121 in July 2006, only one vehicle modification
remains—the Ice Frost Ramp design—scheduled for testing in February 2007 aboard STS-117. Therefore, NASA’s
Operations Management Council removed the Space Shuttle RTF as a material weakness based on evidence that
the technical and cultural issues contributing to the Columbia accident have been corrected.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 59


Financial Management Data Integrity
FMFIA Section 2 Weakness
Responsible Official: Chief Financial Officer

Description: This material weakness focused on two identified challenges: Fund Balance with Treasury differ-
ences and estimating environmental liabilities. Weaknesses in NASA’s procedures for reconciling items resulted in
unexplained differences in the Agency’s Fund Balance with Treasury account, as compared to Treasury balances.
Weaknesses in NASA’s procedures for generating estimates of its Unfunded Environmental Liabilities resulted in a
lack of auditable evidence to support estimates of environmental liabilities.

Corrective Action Plan: NASA established additional reconciliation controls and procedures at all Centers and at
Headquarters to assure consistent access to the data required for Agency oversight. NASA also developed and
implemented a process for estimating environmental liabilities in a consistent manner and held joint training classes
for the environmental engineers and accountants responsible for identifying and reporting environmental liabilities to
assure consistent application of policies and procedures. Additional performance reporting, in the form of a monthly
review of Center corrective action plans and monthly financial metrics, also contributed to resolution of this weak-
ness. As a result of these improvements, the Operations Management Council removed this item from the reported
material weakness list.

60 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Systems, Controls, & Legal Compliance

Office of the Inspector General Statement on


Material Weaknesses at the Agency

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 61


62 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Systems, Controls, & Legal Compliance

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 63


64 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Systems, Controls, & Legal Compliance

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 65


66 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Systems, Controls, & Legal Compliance

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 67


68 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Systems, Controls, & Legal Compliance

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 69


Federal Financial Management Improvement Act
NASA assessed the Agency’s financial management systems to determine whether they comply with the require-
ments of the Federal Financial Management Improvement Act (FFMIA) of 1996. The assessment was based on
guidance issued by the Office of Management and Budget (OMB). NASA management agrees with the findings set
forth in the independent auditor’s Report on Compliance with Laws and Regulations.

NASA is in the process of implementing remaining corrective actions from its 2005 Corrective Action Plan that
address the Agency’s FFMIA weaknesses. Those corrective actions are intended to resolve the following:
• Certain weaknesses in financial management process controls, primarily related to the Agency’s Property, Plant
and Equipment;
• Limitations in NASA’s Core Financial Module software that continue to require compensating controls and
systems; and
• Incorrect postings to certain general ledger accounts due to system configuration or design issues.
As of September 30, 2006, NASA financial management systems do not substantially comply with federal financial
management systems standards and requirements.

Improper Payments Information Act


The Improper Payments Information Act (IPIA) of 2002 requires federal agencies to review their programs and activi-
ties annually to identify those that are susceptible to risk. OMB guidance defines significant improper payments as
annual improper payments in a Line of Business or Program that exceed both 2.5 percent of program payments
and $10 million. Agencies are required to identify any programs and activities at risk, report the annual amount of
improper payments, and implement corrective actions. NASA’s improper payment risk assessments identify existing
and emerging vulnerabilities that can be reduced through corrective actions and that may produce a corresponding
increase in program savings for the Agency.

In FY 2006, NASA continued to improve the Agency’s internal controls by establishing policies and procedures in
NASA’s Financial Management Requirements (FMR), Volume 19: Periodic Monitoring Controls Activities, and by
requiring that all NASA Field Centers perform 23 financial reconciliations or verifications on a scheduled basis. The
Agency also established a Quality Assurance Office within the Office of the Chief Financial Officer to provide direction
and focus for NASA Internal Control activities.

NASA’s Efforts to Identify Erroneous/Improper Payments


NASA reviews historical performance from the Office of the Chief Financial Officer to identify programs and activi-
ties susceptible to significant improper payments. NASA’s assessed risk and actual results for the past three fiscal
years have shown NASA’s improper payments to be less than 2.5 percent of program payments and less than
$10 million.

In FY 2006, the Office of the Chief Financial Officer expedited the identification and recapturing of improper pay-
ments that may have occurred at NASA Centers by implementing new processes based on OMB Memoranda
M-03-07, Programs to Identify and Recover Erroneous Payments to Contractors. NASA further strengthened
the Agency’s approach for addressing IPIA requirements by conducting an erroneous/improper payment assess-
ment on all the research and development contract disbursements processed between FY 1997 and FY 2005,
with a cumulative value of approximately $57.5 billion, as depicted in the chart below. The assessment validated
that NASA’s susceptibility to improper payments is low under current guidance. (Note: The Improper Payment
Reduction Outlook chart required by OMB Circular A-136, Financial Reporting Requirements, is not included in this
report because NASA identified no programs susceptible to significant risk.)

70 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Systems, Controls, & Legal Compliance

NASA’s Planned Fiscal Year 2007 IPIA Compliance Approach


In FY 2007, NASA plans to perform a risk assessment of the Agency’s commercial and non-commercial disburse-
ment activities based on lessons learned from the FY 1997 to FY 2005 results of audit recovery activities (see table
below), and guidance from OMB Memorandum M-06-23, Issuance of Appendix C to OMB Circular A-123, August
10, 2006. NASA also plans to re-compete the Agency’s recovery audit services contract.

NASA’s recovery audit results are shown below:

NASA FY 1997 to FY 2005 Recovery Audit Summary


Actual Amount Reviewed Amounts Identified for Amounts Recovered,
Agency Component and Reported Recovery Current Year
Ames Research Center N/A $ 9,608.00 $ 9,608.00
Glenn Research Center N/A $ 6,254.00 $ —
Langley Research Center N/A $ — $ —
Dryden Flight Research Center N/A $ 9,312.00 $ —
Goddard Space Flight Center N/A $ 17,634.87 $ —
Marshall Space Flight Center N/A $ 111,276.66 $ 111,276.66
Johnson Space Center N/A $ 99,200.00 $ 15,566.00
Kennedy Space Center N/A $ 2,969.00 $ 2,969.00
Total $ 57,439,000,000.00 $ 256,254.53 $ 139,419.66

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 71


Legal Compliance
NASA’s Annual Performance and Accountability Report must meet legislative and regulatory government-wide
requirements established by Congress and OMB. The table below lists these requirements and indicates where in
this Report each requirement is satisfied.

Summary of Legislative and Regulatory Requirements


Legislation Guidance Summary of Requirements Comments
Reports Consolidation Act — Authorizes the combining of performance The statement of reliability and
of 2000 and financial reports into a consolidated completeness is included in the
Performance and Accountability Administrator’s transmittal letter.
Report (PAR). Requires a statement on
the reliability and completeness of the
data contained in the report.
Government Performance OMB Circular A-11 Provides for the establishment of strategic Parts 1 and 2 of this report
Results Act of 1993 Part 6, Preparation planning and performance measurement contain information on NASA’s
and Submission in the federal government. Mandates that performance results for FY 2006.
of Strategic Plans, agencies prepare strategic plans, perfor-
Annual Performance mance plans, and report on the results.
Plans, and Annual
Program Performance
Reports

OMB Circular A-136,


Federal Financial
Accounting
Standards
Federal Managers OMB Circular A-123, Requires ongoing evaluation of and The FMFIA statement is included
Financial Integrity Act Management’s reporting on the adequacy of the systems in Systems, Controls, & Legal
of 1982 Responsibility for of internal accounting and administrative Compliance.
Internal Control control.
Federal Financial January 4, 2001 OMB Requires a determination and report on FFMIA is addressed in Systems,
Management Memorandum, the substantial compliance of agency Controls, & Legal Compliance.
Improvement Act of 1996 Revised Implementa- systems with federal financial manage-
tion Guidance for ment system requirements, federal ac-
FFMIA counting standards, and the U.S.
government Standard General Ledger
at the transaction level.
Inspector General Act of OMB Circular A-136, Provides for independent review of The Office of the Inspector
1978 Federal Financial agency programs and operations. Annual General report of material weak-
Accounting report of material weaknesses required in nesses is included in Systems,
Standards the PAR. Controls, & Legal Compliance.
The E-Government Act of — Requires the agency’s strategic plan be NASA’s Strategic Plan, budget,
2002 posted on the Agency’s Web site. and PAR are available at http://
www.nasa.gov/about/budget/
index.html.
The Chief Financial OMB Circular A-136, Requires the Chief Financial Officer to See Part 3: Financials.
Officers Act of 1990 Federal Financial submit a financial report to OMB. This
Accounting report is consolidated with performance
Standards data under the Reports Consolidation Act
of 2000.
Improper Payments OMB Memorandum Requires an assessment of the potential See Systems, Controls, & Legal
Information Act of 2002 M-06-23, Issuance for improper payments and a report of this Compliance.
of Appendix C to assessment to Congress.
OMB Circular A-123,
August 10, 2006

72 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Looking Ahead

Staying on Target and on Budget


To achieve the Vision for Space Exploration, NASA is focusing resources on tasks that will enable the Agency to
achieve the Vision’s goals in the target timeframes. In a February 2006 statement about NASA’s FY 2007 budget
request, NASA Administrator Mike Griffin stated that NASA is, and will continue to be, faced with making difficult
decisions in setting priorities for the Agency’s resources, time, and energy. For example, Agency management
greatly scaled down near-term research and development within the Prometheus Nuclear Systems and Technology
Program to free up funds for more pressing research and development. NASA also opted to keep the budgets for
space and Earth science portfolios relatively flat in the five-year budget horizon. During the past decade, budget
increases in these portfolios surpassed NASA’s top-line budget growth, and NASA cannot sustain that growth rate.
NASA will continue to fund operational missions, as well as priority missions in formulation or development, but
by eliminating or deferring lower-priority missions, the Agency will control budget growth and free up resources for
mandated human exploration initiatives.

Transitions
NASA will retire the Space Shuttle in 2010 and begin the Agency’s transition to a new human-rated space
transportation system, the Orion Crew Exploration Vehicle and the Ares family of launch vehicles. As part of this
transition, NASA will move more than 1,000 employees from the Space Shuttle Program to the Constellation
Systems Program and other understaffed areas. NASA also must transition surplus Shuttle facilities and assets for
other uses.

To facilitate these considerable transitional tasks, NASA is conducting internal and external studies as a basis for
formulating processes and establishing realistic timeframes that will support a smooth transition with the fewest
negative impacts possible.

Maximizing NASA’s Workforce


In FY 2006, NASA identified under-utilized personnel and skill gaps in the Agency’s current and future workforce
needs. At NASA’s request, the National Research Council is conducting a study of issues affecting science and
engineering workforce needs, particularly workforce trends in the future. The final report, due by the end of
2006, will provide reference information as NASA develops strategies for future workforce development and
management.

In addition, NASA is gathering skill information on the Agency’s current civil service employees using the
Competency Management System (CMS). CMS is a new Agency-wide tool that will enable NASA to maintain a list-
ing of workforce knowledge capabilities, align the expertise of the workforce to the Mission via the budget planning
process, and increase staff capabilities in targeted knowledge areas. NASA’s CMS team also will use CMS data
on employee competencies to modify the process for analyzing future workforce competency gaps and to address

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 73


Developing the Workforce of the Future
NASA’s continued success is built on a steady supply of highly skilled, dedicated, and
diverse professionals. NASA’s Education programs use the Agency’s missions and
research to spark student interest in science, technology, engineering, and mathemat-
ics (STEM) and prepare tomorrow’s workforce for challenging STEM-related careers.
NASA’s Education programs provide opportunities that allow undergraduate, gradu-
ate, and post-doctoral students to hone their skills and expand their knowledge by
working alongside NASA scientists and engineers. Many programs target under-
represented and under-served communities to help create a more balanced national
workforce. For example, the Jenkins Predoctoral Fellowship Program (JPFP), which
creates opportunities for minorities, women, and individuals with disabilities, provides Dr. Shavesha Anderson, an aerospace
up to three years of financial support for graduate education leading to a doctoral engineer and JPFP alumni fellow, conducts
degree in a NASA-related discipline. NASA scientists and engineers serve as research in the area of analytical chemis-
research leads and mentors throughout a JPFP fellow’s tenure to ensure their suc- try. She participated in JPFP while pursuing
cess. In summer 2006, NASA and the American Indian Higher Education Consortium a Ph.D. in chemistry at the American Univer-
sity in Washington, D.C. After completing her
(AIHEC) launched the NASA–AIHEC Summer Research Program, a strategic approach
degree, she joined the workforce at NASA’s
to inspire young American Indians to pursue STEM-related careers. Student–faculty Goddard Space Flight Center. (NASA)
teams from 14 of the Nation’s 35 Tribal Colleges and Universities conducted research
alongside mentors at NASA Centers on a broad range of subjects, including robotics,
three-dimensional design, geospatial data analysis, and astrobiology.

employee development needs through the Agency’s new System for Administration, Training, and Educational
Resources for NASA (SATERN). In the future, NASA will use CMS to link together people with the same or similar
competencies into communities of practice. Managers will be able to search through these communities of prac-
tice to find employees, positions, or organizations with desired competencies, helping NASA to maximize available
workforce, partner across organizations or Centers, and disseminate information relevant to a community.

Improving Agency Management


NASA is improving management of the Agency’s finances and physical and human resources, assets, and pro-
cesses through a combination of supporting technology and business infrastructure.

During FY 2006, the Integrated Enterprise Management Program (IEMP) developed for implementation in FY 2007
an updated version of the SAP Core Financial software to improve the Financial system’s compliance with federal
financial and accounting systems standards and to respond to recommendations from the Government Account-
ability Office. The SAP Version Update project will help improve the quality of financial and management information
available for Agency decision-making, streamline the funds-distribution process, and stabilize the impact of con-
verting to full-cost accounting on programs and projects. The updated software also should help NASA make
progress towards achieving a clean audit opinion on future fiscal year-end financial statements, as well as a “Green”
rating on the President’s Management Agenda (PMA) scorecard for “improved financial performance.”

In the coming year, IEMP will implement a number of tools to enhance Agency operations:
• The Contract Management Module, a tool to support contract/grant writing and administration, procurement
workload management, and data reporting and management. NASA will implement the Contract Management
Module at the same time as the SAP Version Update;
• The Aircraft Management Module, an integrated toolset that will help NASA manage the Agency’s fleet of
mission-support, research, and mission-management aircraft by tracking aircraft inspections, mission configu-
rations, and aircrew qualifications and status to help NASA control and reduce the cost of operations; and
• eTravel, a government-wide, Web-based travel management service that includes self-service travel booking,
authorization, and vouchering. This initiative, part of the PMA EGovernment effort, will simplify the travel pro-
cess for employees and help NASA track, manage, and control travel expenses.

74 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Looking Ahead

IEMP also is planning initiatives for implementation by the end of the decade:
• The Property, Plant, and Equipment (PP&E) module will focus on the accountability, valuation, and tracking
of internal-use software, program/project assets, and personal property that is either NASA-owned and held
or NASA-owned and contractor-held. The project team plans to use the Department of Energy’s Oak Ridge
National Laboratory version of SAP PP&E implementation as a model for processes and configuration.
• The Human Capital Information Environment, which will provide online access to near-real-time human captial
information;
In March 2006, NASA opened the NASA Shared Services Center (NSSC) at Stennis Space Center in Mississippi.
This public/private partnership between NASA and Computer Sciences Corporation Service Providers consoli-
dates all Agency support services, including financial management, human resources, information technology, and
procurement. NASA is transitioning support services to NSSC in phases. In FY 2007, NASA will complete the
moves of employee services and payroll, procurement, contract services, and information technology and will
begin to transition Small Business Innovative Research/Small Business Technology Transfer. Accounts payable
and receivable will be the last major service elements to transition, scheduled for FY 2008.

Thinking (and Contracting) Outside of the Box


To increase Agency efficiencies, NASA is seeking ways to leverage technology and additional capabilities available
through commercial industry, other federal agencies, academia, and international partners.

In August 2006, NASA signed Space Act Agreements with two commercial companies—Space Exploration
Technologies and Rocketplane–Kistler—to develop and demonstrate commercial orbital transportation services
that can deliver crew and cargo to the International Space Station (ISS). Should they successfully demonstrate
their cargo transportation capabilities, they will be able to bid to provide cargo transportation services for the ISS
after Shuttle retirement. Space Exploration Technologies plans to begin demonstrations of its Falcon 9 reusable
launch vehicle and Dragon spacecraft in late FY 2008. Rocketplane–Kistler also plans the first launch of its K–1
launch vehicle in early FY 2009. If these new commercial partnerships are successful, the resulting vehicles will
increase NASA’s options for launching cargo to the ISS as the Agency transitions from the Shuttle to the Ares and
Orion space transportation elements.

To encourage emerging commercial launch service providers and potentially provide significant cost savings to
the science and exploration community, the Agency modified the NASA Launch Services contract to allow onto
the contract new proposers who have not yet had a successful flight. By August, an alternate launch provider
responded to the contract modification with a proposal that currently is under evaluation. In addition, NASA con-
ducted a study of emerging launch providers. During summer 2006, a cross-Agency team visited four out of an
initial 40 emerging launch service providers to gather information and evaluate their maturity and ability to satisfy
NASA’s mission requirements.

In September, NASA formed a unique partnership with Red Planet Capital, Inc., to give NASA earlier and broader
exposure to emerging technologies. Red Planet Capital, a non-profit organization, will use venture capital and a
NASA investment of approximately $75 million over five years to attract private-sector technology innovators and
investors who typically have not done business with the Agency. NASA will provide strategic direction and technical
input to this partnership to assure that it complements other NASA strategies to promote private sector participa-
tion in space exploration.

Strengthening International Relationships and Collaboration


International partnerships are playing an increasing role in space exploration as robotic and human missions
become more complex and more expensive. Through international partnerships, NASA and the space agencies of
other nations can pool resources and capabilities while forging unique international alliances.

PART 1 • MANAGEMENT DISCUSSION & ANALYSIS 75


Administrator Mike Griffin and G. Madhavan Nair, Chair of the Indian Space Research Organization, signed two
Memoranda of Understanding in May 2006 stating that NASA will provide two scientific instruments for India’s
Chandrayaan–1 lunar orbiter mission, scheduled to launch in FY 2008. This follows the Joint Statement of July 18,
2005, signed by President George W. Bush and Indian Prime Minister Singh, pledging to build closer ties between
the United States and India in space exploration, satellite navigation and launch, and commercial space enterprise.
NASA’s contributions to Chandrayaan–1 will include the Moon Mineralogy Mapper, which will assess the Moon’s
mineral resources, and the miniature synthetic aperture radar, which will look for ice deposits in the Moon’s polar
regions. The Chandrayaan–1 mission also will give NASA additional information about the lunar environment as the
Agency prepares for future robotic and human lunar missions.

In September 2006, NASA’s Administrator met in


China with Laiyan Sun, administrator of the China
National Space Administration. This was the first time a
NASA Administrator has visited China.

The two administrators discussed the space explora-


tion goals of their respective countries and agencies,
and the visit marked a first, tentative step toward U.S.–
China cooperation in space exploration. Because of
political considerations, the two countries are constrained
in what they can discuss, and no human-spaceflight
cooperative efforts are under consideration. A protocol
agreement signed by John Marburger, director of the
White House Office of Science and Technology Policy and
the President’s science advisor, and Xu Guanhua, China’s On his first day of visiting China, Administrator Mike
minister of science and technology, allows the countries to Griffin presents a picture montage with a flown American
exchange scientific and technical knowledge and to pur- and Chinese flags to Dr. Yuan Jiajun, President and CEO of
the China Academy of Space Technology. The next day,
sue advanced and applied technology projects in specific
Griffin and astronaut Shannon Lucid spoke to graduate stu-
research areas, including Earth and atmospheric dents at the Chinese Academy of Sciences about the U.S.
sciences. space program. (NASA)

76 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Part 2: Detailed Performance Data
Previous page: Researchers at NASA’s Langley Research Center prepare a 21-foot-wingspan, 8.5-percent-scale
prototype of a blended wing body aircraft for testing at Langley’s historic full-scale wind tunnel. Boeing Phantom Works
has partnered with NASA and the Air Force Research Laboratory to study the structural, aerodynamic, and operational
advantages of the advanced aircraft concept, which is a cross between a conventional plane and a flying wing design.
(Boeing Phantom Works/B. Ferguson)
Above: Engineers at NASA’s Dryden Flight Research Center conduct vibration testing on the F-15B testbed aircraft to pre-
pare it for test flights of the Quiet Spike sonic boom mitigator. Researchers at NASA and Gulfstream Aerospace developed
the telescopic Quiet Spike (shown here extended from the nose of the aircraft) as a means of controlling and reducing the
sonic boom caused by an aircraft “breaking” the sound barrier. (NASA/T. Landis)

78 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

NASA’s Performance Rating System


In February, NASA issued the 2006 NASA Strategic Plan, reflecting the Agency’s focus on achieving the Vision for
Space Exploration through six Strategic Goals and, under Strategic Goal 3, six Sub-goals. At the same time, NASA
updated the Agency’s FY 2006 Performance Plan to include multi-year and annual performance metrics that NASA
will pursue in support of the new Strategic Goals.

Part 2: Detailed Performance Data describes each Strategic Goal and Sub-goal and provides a detailed perfor-
mance report and color rating, including trend data, for each of NASA’s 37 multi-year Outcomes and 165 Annual
Performance Goals (APGs). The FY 2006 NASA Performance Improvement Plan, included at the end of this part,
provides further information on performance shortfalls and the Agency’s plans to achieve the unmet multi-year
Outcomes and APGs in the future.

NASA managers assign annual performance ratings to each multi-year Outcome and APG based on a number of
factors, including internal assessments of performance against plans in such areas as budgets, schedules, and key
milestones. Managers also consider input from external reviewers, including NASA advisors and experts from the
science community, as well as recommendations from the Office of Management and Budget.

NASA rates performance as follows:

Multi-year Outcome Rating Scale


Green NASA achieved most APGs under this Outcome and is on-track to achieve or exceed this Outcome.
Yellow NASA made significant progress toward this Outcome, however, the Agency may not achieve this Outcome as stated.
Red NASA failed to achieve most of the APGs under this Outcome and does not expect to achieve this Outcome as stated.
This Outcome was canceled by management directive or is no longer applicable based on management changes to
White
the APGs.

APG Rating Scale


Green NASA achieved this APG.
Yellow NASA failed to achieve this APG, but made significant progress and anticipates achieving it during the next fiscal year.
Red NASA failed to achieve this APG, and does not anticipate completing it within the next fiscal year.
White This APG was canceled by management directive, and NASA is no longer pursuing activities relevant to this APG.

In FY 2006, NASA achieved 84 percent of the Agency’s 37 multi-year Outcomes, as shown in Figure 1. NASA
also achieved 70 percent of the Agency’s 165 APGs. NASA rated 12 percent of the Agency’s APGs Yellow and
18 percent either Red or White. In previous years, NASA rated performance that exceeded expectations and

PART 2 • DETAILED PERFORMANCE DATA 79


measures Blue; however, NASA discontinued this rating as of FY 2006. (See Figure 2 for a summary of NASA’s
APG ratings for FY 2006.)

Figure 1: Summary of NASA’s FY 2006 Multi-year Outcome Ratings


100%

2
80%

1 1 3 4 3 3 3 2 2 4 3
60%

5
40%

20% 1

0%
1 2 3A 3B 3C 3D 3E 3F 4 5 6 CASP
CASP = Cross-Agency Support Programs
Strategic Goal and Sub-goals

Figure 2: Summary of NASA’s FY 2006 APG Ratings


100%
1 1 1 2 1
2 1
1 1 4 2 6 2 9
80% 4

2 3 1
4
60%

1 2 6 11 18 15 17 4 2 8 8 21
40%

20%

0%
1 2 3A 3B 3C 3D 3E 3F 4 5 6 CASP EM
CASP = Cross-Agency Support Programs
Strategic Goals and Sub-goals EM = Efficiency Measures

Figure 3 shows an estimate of NASA’s FY 2006 expenditures toward achieving each Strategic Goal and Sub-goal.
NASA’s financial structure is not based on the Strategic Goals; it is based on lines of business that reflect the
costs associated with the Agency’s Mission Directorate and Mission Support programs. To derive the estimate of
expenditures, NASA analysts reviewed and assigned each Agency program to a Strategic Goal (and Sub-goal,
when appropriate), then estimated the expenditure based on each program’s percentage of the business line

80 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

reflected in that Strategic Goal (and Sub-goal, when appropriate). This method does not allow NASA to estimate
expenditures by multi-year Outcomes or APGs. However, NASA is making progress in aligning the Agency’s bud-
get and financial structure with performance, and the Agency plans to report expenditures by multi-year Outcomes
as soon as possible.

The numbers provided in the figure below and throughout the Measuring NASA’s Performance chapter in
Part 1: Management Discussion & Analysis are derived from the FY 2006 Statement of Net Cost included in
Part 3: Financials.

Figure 3: FY 2006 Cost of Performance for NASA’s Strategic Goals and Sub-goals

6,000
5,416.12

5,000

4,000
$ Millions

3,000

1,948.93
2,006.44 1,910.95
2,000
1,636.36 1,622.16

974.71 1,050.00
1,000
665.26
367.07
44.00
0
1 2 3A 3B 3C 3D 3E 3F 4 5 6
Strategic Goal and Sub-goal

PART 2 • DETAILED PERFORMANCE DATA 81


Strategic Goal 1 Fly the Shuttle as safely as possible until its retirement, not
later than 2010.
By Presidential direction, NASA will retire the Space Shuttle in 2010 to make way for a new generation of space
transportation vehicles with the capability to travel beyond low Earth orbit to the Moon and beyond. Currently, the
Shuttle is the largest human-rated space vehicle in the world,
capable of delivering both crew and massive equipment to low
Earth orbit. This capability makes the Shuttle critical to complet-
ing the International Space Station (ISS) and fulfilling the Vision for
Space Exploration.

The Agency has three Shuttles in operation: Discovery, Atlantis,


and Endeavour. NASA plans 15 to 17 Shuttle flights to support
ISS assembly, plus a possible Hubble Servicing Mission before
retiring the Shuttle.

In FY 2006, NASA flew two successful Shuttle missions:


STS-121 and STS-115, the first ISS assembly mission since
The drag chute glows in the lights illuminating
STS-113 in November 2002. During both missions, the Agency
Atlantis as it touches down at Kennedy Space
tested new techniques for monitoring the launch, examining the Center before dawn on September 21, 2006. The
Shuttle for potential damage during launch, and conducting on- mission, STS-115, marked NASA’s return to regu-
orbit repair to assure Shuttle integrity and crew safety. lar Shuttle flights and ISS construction. (NASA)

Risks to Achieving Strategic Goal 1


The current ISS assembly schedule leaves little room for delays in launching the Shuttle. However, the safety of the
Shuttle’s crew is paramount, and NASA will not compromise safety for schedule. The primary external risk facing
the Space Shuttle Program is inclement weather. NASA officials delayed launching STS-115 several times due to
lightning, high winds, and the impact of Hurricane Ernesto. Hurricanes also have the potential to cause significant
damage to the NASA facilities that support Shuttle launches.

The Space Shuttle Program also faces internal risks associated with transitioning the Shuttle’s workforce and facili-
ties to support the Agency’s new Constellation Systems Program, which will build NASA’s next-generation space
vehicles. In addition, NASA may face cost and schedule problems if any in-flight anomalies or other unacceptable

NASA Celebrates 25th Anniversary of First Shuttle Flight


On the morning of April 12, 1981, two astronauts, Commander John Young
and pilot Robert Crippen, sat strapped into their seats on the flight deck of a
radically new spacecraft known as the Space Shuttle, ready to make the bold-
est test flight in history. Designated STS-1, this first launch of Shuttle Columbia
marked the inaugural flight of NASA’s newest space transportation system and
the first time a space vehicle was crewed during its maiden voyage.
In April 2006, as part of the 25th anniversary of this historic flight, NASA
Administrator Michael Griffin awarded Robert Crippen the Congressional Space
Medal of Honor, the Nation’s highest award for spaceflight achievement. John
Young received the award in 1981.
“It is unlike any other thing that we’ve ever built,” said Crippen. “Its capabili- Above: John Young (left)
ties have carried several hundred people into space, it’s carried thousands of and Robert Crippen pose
with a model of Columbia
pounds of payload into space. It gave us Hubble, it gave us Galileo, it gave
for the first official Shuttle
us Magellan. And it’s allowed us to essentially build a space station, although crew portrait. (NASA)
we’ve got some work still to do on that. So it is something that has been truly Left: STS-1 launches from
amazing and I’m honored to have been a part of it.” The past 25 years of Kennedy Space Center on
Shuttle flights are a testimony to NASA’s dedicated workforce—the people who April 12, 1981. (NASA)
came together to make the Shuttle missions possible.

82 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

program and flight risks occur beyond the scope of Space Shuttle Program reserves. If the Space Shuttle Program
is delayed dramatically, NASA may not complete all ISS elements as currently agreed on with the Agency’s Interna-
tional Partners by Shuttle retirement in 2010.

Resources, Facilities, and Major Assets


The Space Shuttle Program currently occupies 640 facilities at multiple NASA Centers and uses over 900,000
pieces of equipment. The primary operational hardware includes the three operational Shuttles and the Shuttle
preparatory and launch facilities at the Kennedy Space Center, including the Vehicle Assembly Building, where
the Shuttle is connected to its external tank and solid rocket boosters, the large crawler transporter that carries
the Shuttle to the launch pad, and the launch tower at pad 39A. The Michoud Assembly Facility in New Orleans
manufactures the external tanks and ships them to Kennedy.

The cost of performance for Strategic Goal 1 during FY 2006 was $5,416.12 million.

Outcome Rating APG Rating

1 1

100% 100%

Under Strategic Goal 1, NASA may not Under Strategic Goal 1, NASA failed to
achieve the single Outcome as stated. achieve the single APG.

OUTCOME 1.1: ASSURE THE SAFETY AND INTEGRITY OF THE SPACE SHUTTLE WORKFORCE, SYSTEMS AND PROCESSES,
WHILE FLYING THE MANIFEST.

FY 2006 FY 2005 FY 2004 FY 2003


Yellow Green Green None

In FY 2006, the Space Shuttle Program successfully flew two mis-


sions. STS-121 (Discovery), launched on July 4, 2006, was the
Agency’s second return to flight mission. It gave NASA engineers
another opportunity to address the issue of foam loss from the Shut-
tle’s external tank during liftoff—a problem that led to the Columbia
accident and occurred again on the first post-Columbia accident
mission, STS-114, launched in July 2005.

NASA continued to implement improvements introduced during the


STS-114 mission: a new suite of cameras and sensors to moni-
tor the Shuttle during launch; additional orbital maneuvers near the
ISS to allow crew to check for damage; and ground procedures to
provide mission managers with the high-fidelity information needed Staff at Kennedy Space Center’s Mission Con-
to assess Shuttle integrity. During the STS-121 mission, Discovery trol Center cheer and wave American flags as
delivered cargo and supplies to the ISS and several science experi- STS-121 launches on July 4, 2006. This was
ments, and crewmembers conducted spacewalks to repair the ISS NASA’s second return to flight mission and the
Mobile Transporter, hardware critical to completing ISS construction. first time the Agency had launched a Shuttle
The second FY 2006 Shuttle mission, STS-115 (Atlantis), launched mission on Independence Day. (NASA)

PART 2 • DETAILED PERFORMANCE DATA 83


on September 9. Atlantis crewmembers successfully conducted three complex spacewalks to install the P3/P4
truss segment on the ISS and to deploy four large solar arrays.

Despite the achievements during these two missions, NASA confirmed two Type–B mishaps (damage to property
of at least $250,000 or permanent disability or hospitalization of three or more persons): damage to Discovery’s
robotic manipulator arm caused while crews were servicing the Shuttle in the Orbiter Processing Facility hangar;
and damage to Atlantis’s coolant loop accumulator due to over-pressurization. NASA also reported a personnel
injury at Kennedy Space Center’s Launch Complex 39A. NASA convened a Mishap Investigation Board to decide
how to classify the incident, determine the root causes, recommend corrective actions, and report their findings to
NASA and other stakeholders.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Achieve zero Type–A (damage to property at least $1M or death) or Type–B
6SSP1 5SSP1 4SSP2 3H06
(damage to property at least $250K or permanent disability or hospitalization
Red Green Yellow Red
of 3 or more persons) mishaps in 2006.

Performance Shortfalls
Outcome 1.1 and 6SSP1: The Space Shuttle Program reported and investigated three major incidents in
FY 2006. Two of these are confirmed Type–B mishaps. NASA is reviewing details of the third incident.

84 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

Strategic Goal 2 Complete the International Space Station in a manner


consistent with NASA’s International Partner commitments
and the needs of human exploration.
The International Space Station (ISS) plays a vital role in NASA’s human space exploration efforts by providing an
on-orbit facility where researchers can study the effects of space travel on human health and performance over
extended periods of time. NASA also uses the ISS to test technologies, capabilities, and processes for future
human and robotic missions to the Moon, Mars, and beyond.

NASA launched Space Shuttle Discovery, STS-121, on


July 4, 2006, the second return to flight mission since the
Columbia accident in 2003 and a precursor to launching
additional ISS hardware on future Shuttle flights. The mission
tested new safety measures and changes to the external
tank and delivered cargo and supplies to the ISS, including a
piece of replacement hardware for the ISS Mobile Transporter
and several science experiments. On September 9, NASA
resumed ISS assembly with the launch of Shuttle Atlantis, STS-
115. Atlantis ferried a major piece of infrastructure to the ISS,
the P3/P4 integrated truss segment, which will provide addi-
tional power to support future modules and has a mechanism The new P3/P4 truss and solar panels are visible
(running from the upper left corner to the center) in
to rotate the truss sections to keep the solar arrays pointed at
this photo taken by Shuttle Atlantis as it undocked
the Sun as the ISS orbits. from the ISS on September 17, 2006. (NASA)

Risks to Achieving Strategic Goal 2


NASA’s ISS assembly schedule has limited reserves for internal and external factors that could potentially delay
completion of the ISS beyond 2010. However, NASA remains committed to completing the ISS on schedule to
fulfill the Vision for Space Exploration and to meet the Agency’s commitments to the International Partners.

NASA enjoys the benefits of partnerships with the other nations contributing to the ISS. These partnerships
enhance the Agency’s ability to achieve NASA’s Strategic Goals while also benefiting partner nations. However,
international space agency partnerships contain multiple risks inherent with each partner country. NASA’s ability to
maintain international partnerships, even as world conditions and international relationships change, is important to
the success of the International Space Station.

Internally, NASA must manage one of its biggest challenges: assuring a skilled and focused workforce for contin-
ued ISS and Shuttle operations while developing the post-Shuttle workforce. During FY 2006, NASA conducted
internal workforce studies, and requested a workforce study by the National Research Council, to help Agency
leaders develop strategies both for transitioning staff from the Space Shuttle Program to operations supporting
Constellations Systems vehicle development and for assuring a highly trained, skilled workforce for current and
future needs.

Resources, Facilities, and Major Assets


The single largest facility and asset supporting Strategic Goal 2 is the ISS. It represents dollar, human resource, and
physical asset investments by the United States, Russia, Canada, and the European Space Agency. NASA also
is processing two new modules, provided by the European Space Agency and the Japan Aerospace Exploration
Agency, for launch by Shuttle in late 2007 and 2008, respectively.

Other major resources also support Strategic Goal 2:


• The Space Shuttle fleet, the only vehicles able to carry large components to the ISS;

PART 2 • DETAILED PERFORMANCE DATA 85


• The Space Station Processing Facility located at Kennedy Space Center, where NASA prepares equipment for
launch;
• The Mock-up Facility at Johnson Space Center, where ISS expedition crews prepare for their missions using
duplicates of on-orbit equipment and facilities; and
• The Neutral Buoyancy Laboratory at Johnson Space Center, a 6.2 million-gallon pool where expedition crews
and Shuttle astronauts train for extravehicular activities like ISS construction in a simulated weightless environ-
ment.
The cost of performance for Strategic Goal 2 during FY 2006 was $2,006.44 million.

Outcome Rating APG Ratings

33%

1 2

100% 67%

Under Strategic Goal 2, NASA is on track to Under Strategic Goal 2, NASA achieved 2 of 3
achieve the single Outcome. APGs.

OUTCOME 2.1: BY 2010, COMPLETE ASSEMBLY OF THE U.S. ON-ORBIT SEGMENT; LAUNCH INTERNATIONAL PARTNER
ELEMENTS AND SPARING ITEMS REQUIRED TO BE LAUNCHED BY THE SHUTTLE; AND PROVIDE ON-ORBIT RESOURCES FOR
RESEARCH TO SUPPORT U.S. HUMAN SPACE EXPLORATION.

FY 2006 FY 2005 FY 2004 FY 2003


Green Green None None

With the installation of the P3/P4 truss by the STS-115 crew in September
2006, NASA took a major step toward completing the ISS. With its solar
panels fully extended, the P3/P4 truss will supply the completed ISS with a
quarter of its power. The current wiring configuration restricts power
generated by the truss’s solar panels to the operation of the P3/P4 seg-
ment. During STS-116, scheduled for December 2006, crewmembers
will continue preparing the ISS to support future modules by rewiring
the power-generating truss to provide power to the rest of ISS.

NASA also made progress in FY 2006 toward achieving Outcome 2.1


through international collaboration and cooperation. In March 2006, Astronaut Heidemarie Stefanyshyn-Piper,
NASA and the Agency’s International Partners approved the final ISS STS-115 mission specialist, works near
configuration at the Heads of Agency meeting held at Kennedy Space the ISS’s Solar Alpha Rotary Joint during a
Center. This approval allows NASA to finalize the Shuttle launch sched- spacewalk on September 12, 2006. This
ule for ISS assembly. NASA also contracted with the Russian Space was the first of three spacewalks to add
the new P3/P4 truss. (NASA)
Agency for additional cargo and launch services to the ISS via Soyuz/
Progress spacecraft at a fixed rate through 2011.

86 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6ISS1 Reach agreement among the International Partners on the final ISS configuration. 5ISS5 4ISS5
None
Green Yellow Green
6ISS3 Provide 80 percent of FY 2006 planned on-orbit resources and accommodations to 5ISS4 4ISS4
None
Yellow support research, including power, data, crew time, logistics and accommodations. Yellow Green
6ISS4 For FY 2006 ensure 90 percent functional availability for all ISS subsystems that
None None None
Green support on-orbit research operations.

Performance Shortfalls
NASA was unable to meet the original goal of regularly scheduled Shuttle flights throughout FY 2006 due to foam
issues on the external tank. While these issues were resolved, NASA did not launch the Shuttle until July 2006—10
months after the start of FY 2006. Shuttle flight delays reduced actual upmass and volume capabilities.

PART 2 • DETAILED PERFORMANCE DATA 87


Strategic Goal 3 Develop a balanced overall program of science, exploration,
and aeronautics consistent with the redirection of the human
spaceflight program to focus on exploration.
The Vision for Space Exploration directs NASA to send human explorers to the Moon, Mars, and beyond. Strategic
Goal 3 will be enabled by extensive research into human health and performance in space, development of better,
smaller, and lighter life support systems, and knowledge of the environments of the Moon, Mars and beyond. The
Vision also includes robotic exploration of planetary bodies in the solar system, advanced telescope searches for
Earth-like planets around other stars, and the study of the origins, structure, evolution, and destiny of the universe.
Additional Presidential and Congressional initiatives guide NASA’s study of Earth from space and build on NASA’s
rich heritage of aeronautics and space science research.

Science enables, and is enabled by, exploration. NASA’s access to space makes possible research into scientific
questions that are unanswerable on Earth. The International Space Station provides a laboratory to study astronaut
health and test life-support technologies in zero gravity over long durations. Space-based telescopes observe
the farthest reaches and earliest times in the universe. Robotic spacecraft travel to, land on, rove over, and return
samples from bodies throughout the solar system. And, Earth-orbiting satellites keep watch over Earth, making
regular observations of global change and enabling better predictions of climate, weather, and natural hazards.

NASA also is the lead government agency for civil aeronautics research, and aeronautics remains a core part of the
Agency’s Mission. NASA’s aeronautics research initiatives will expand the capacity and efficiency of the Nation’s
air transportation system and contribute to the safety, environmental compatibility, and performance of existing and
future air and space vehicles.

NASA’s activities under Strategic Goal 3 are broad and varied. These activities are balanced and managed through
the six supporting Sub-goals, which focus on individual facets of Strategic Goal 3. The work, achievements, and
challenges for each Sub-goal are unique. Therefore, NASA reports performance achievements and challenges for
each Sub-goal rather than for the over-arching Strategic Goal 3.

Outcome Ratings APG Ratings


3% 5%
21% 3 5
5 17%
16

19 71

79% 75%

Under Strategic Goal 3, NASA is on track to Under Strategic Goal 3, NASA achieved 71 of
achieve 19 of 24 Outcomes. 95 APGs.

88 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

Sub-goal 3A Study Earth from space to advance scientific understanding


and meet societal needs.
Studying Earth science is in the national interest. NASA’s Earth science programs enhance scientists’ understand-
ing of the Earth system and its response to natural and human-induced changes—understanding that will lead to
improved predictions of climate, weather, and natural hazards. Sub-goal 3A also supports NASA’s partnership with
other federal agencies pursuing Earth observation initiatives, including the Climate Change Research Initiative, the
Global Earth Observation System of Systems, and the U.S. Ocean Action Plan. For example, NASA partners with
the National Oceanic and Atmospheric Administration (NOAA), the U.S. Geological Survey (USGS), the Environ-
mental Protection Agency, the Department of Defense, and other government agencies to collect and disseminate
Earth science-related information to the American public.

NASA’s Earth science missions use satellites, aircraft, and research stations to gather data. The collected data are
used in computer models to analyze Earth’s water cycle, atmospheric composition, weather patterns, ice flows,
and changes in Earth’s crust and oceans. NASA and Earth science partners are developing satellites to deliver
the first measurements of global sea surface salinity and global carbon-dioxide atmospheric column distributions.
Future missions will improve the data record that started with the Earth Observing System (EOS).

Risks to Achieving Sub-goal 3A


NASA planned to transition some of the observations made by EOS to the National Polar-Orbiting Operational
Environment Satellite System (NPOESS), which was designed to integrate the Nation’s future military, civil weather,
and climate satellite systems. The NPOESS program encountered difficulties, however, leading to a slip in the
scheduled launch date and removal of climate instruments from the system. As a result, termination or gaps in
several key climate records are a distinct possibility.

An additional risk is associated with the slow pace of development and limited funding (both at NASA and from
its domestic and international partners) for the ground-based geodetic observing networks. NASA partnered
with other agencies and international partners to establish the Global Geodetic Observing System (GGOS), an
international effort to study on a global scale spatial and temporal changes to the shape of Earth, its oceans, ice-
covers, and land surfaces. The international partners contribute 50 percent of operating resources. GGOS also
supports other applications:

NASA Helps Researchers Diagnose Coral Bleaching


NASA partnered with an international team of scientists to study the fast-
acting coral bleaching plaguing Australia’s Great Barrier Reef. NASA’s
Earth-observing satellites are providing the scientists with near-real-time
sea surface temperature and ocean color data to give them insight into the
impact coral bleaching can have on global ecology. In 2004, NASA scien-
tists developed a free, Internet-based data distribution system that enables
researchers around the world to customize data requests, including ocean
color and sea-surface temperature data obtained by the Terra and Aqua
satellites.
The Great Barrier Reef contains 2,900 reefs, 600 islands, and is a signifi-
cant source of the world’s marine biodiversity. However, these reefs are
extremely sensitive to ocean conditions. Warmer waters force coral to expel
the tiny algae that provide their color. Ultimately the lack of algae will kill the
coral, destroying the reef. NASA’s satellite data helps the scientists monitor
This image of sea-surface temperatures at the southern
temperature and color changes in the Great Barrier Reef and surrounding
Great Barrier Reef shows increased temperatures over in-
waters, helping protect this important natural resource. shore reefs, the location of the most severe coral bleach-
ing. This image was created from data from NASA’s Terra
and Aqua satellites. The temperatures are given in Cel-
sius. (Univ. of Queensland)

PART 2 • DETAILED PERFORMANCE DATA 89


• The precision navigation and timing for geodetic satellites, including Jason–1 and –2, the Gravity Recovery
and Climate Experiment (GRACE), the Ice, Cloud, and Land Elevation satellite (ICESat), and the Constellation
Observing System for Meteorology, Ionosphere, and Climate (COSMIC) mission;
• Navigation of interplanetary probes; and
• Alignment of telescopes and communications equipment.
NASA’s ability to maintain fully this network to support both scientific research and space operations (which go
beyond operations for Earth science missions) is limited. In 2006, NASA closed an important geodetic very-long
baseline interferometry observatory in Fairbanks, Alaska, due to budget shortfalls. In previous years, NASA also
reduced satellite laser tracking observations by 70 percent. NASA is developing a strategic plan for the develop-
ment of a next-generation geodetic network to meet the needs of the scientific community. The National Research
Council is reviewing the draft strategic plan as part of their decadal survey of Earth sciences and applications from
space.

Current U.S. policy commits the federal government to continue collecting Landsat-type data; however, problems
with aging spacecraft and delays with follow-on satellites raise concerns about a possible data gap. Launched in
April 1999, Landsat–7 will deplete its fuel supply by 2010. A Landsat follow-on mission is scheduled to begin in
2012. NASA is drafting requirements for a “free flying” Landsat data continuity mission, scheduled for competi-
tive bid in FY 2007. NASA also is working proactively with the Agency’s international partners to examine other
potential sources of land-cover data that can continue the availability of measurements until a Landsat follow-on is
operational.

Resources, Facilities, and Major Assets


NASA develops Earth science missions either alone or with partners in the United States and around the world.
NASA launches mission satellites, tracks the satellites throughout their missions, and manages data collection,
distribution, and archiving. NASA also conducts an active science program that enables the use of NASA-provided
data to answer scientific questions, improve predictive capability, and, through interagency partnerships, improve
policy and decision-making.

NASA’s Earth Observing System Data and Information System (EOSDIS) manages and distributes data products
through the Distributed Active Archive Centers. These centers process, archive, document, and distribute data
from NASA’s past and current research satellites and field programs. Each center serves one or more specific
Earth science disciplines and provides data products, data information, services, and tools unique to its particular
science. EOSDIS data products are available via the Web.

NASA’s Ground Communication Networks, which include tracking stations and the Wallops Research Range
control and communications, track Earth-orbiting satellites and suborbital vehicles and downlink raw data. The
Distributed Active Archive Centers then process the raw data for distribution to users.

The NASA Earth Science Suborbital Science program supports the maintenance and operation of several
tailored airborne platforms (including the ER–2, DC–8, WB–57F aircraft) for Earth science research. NASA and the
Agency’s community of investigators own and operate a broad range of scientific instrumentation, including both
in-situ and remote-sensing capabilities, that use these platforms for process study, satellite calibration/validation,
and integrated scientific study. In addition, NASA maintains a number of surface-based measurement networks
around the world (many in conjunction with international partners) that support satellite calibration and integrated
scientific activities. For example, the AERONET network maintains approximately 150 Sun photometers around
the world, as well as a data center that receives, processes, and distributes the data from all. In addition, NASA
operates critical components of GGOS, including ground-based systems, satellites, and data systems.

To explore the new interdisciplinary field of integrated global Earth system science, NASA uses advanced models
that assimilate chemical and physical measurements—initially in the atmosphere and then in the ocean—to simu-
late the interactions between multiple components of the Earth system. Integrated global Earth system models are
an effective tool to determine global carbon sources and sinks, the types of aerosols that increase and decrease
global warming, and the important role that clouds play in global climate change.

90 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

The cost of performance for Sub-goal 3A in FY 2006 was $1,636.36 million.

Outcome Ratings APG Ratings


10%
29% 1
2 10%
1

2 6
5
20%
71% 60%

Under Sub-goal 3A, NASA is on track to Under Sub-goal 3A, NASA achieved 6 of 10
achieve 5 of 7 Outcomes. APGs.

OUTCOME 3A.1: PROGRESS IN UNDERSTANDING AND IMPROVING PREDICTIVE CAPABILITY FOR CHANGES IN THE OZONE
LAYER, CLIMATE FORCING, AND AIR QUALITY ASSOCIATED WITH CHANGES IN ATMOSPHERIC COMPOSITION.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

Over 99.9 percent of Earth’s atmosphere is a mixture of nitrogen,


oxygen, and argon. Trace gases and aerosols, including pollutants from
human activities, make up the remaining one-tenth percent. These
gases play a critical role in atmospheric chemistry and contribute to
regional and global climate changes. In FY 2006, NASA participated
in and provided leadership for the Intercontinental Chemical Transport
Experiment (INTEX–B), a comprehensive field campaign to study atmo-
spheric pollutants and trace gases. INTEX–B traced the movement and
evolution of pollutant gases and particles between and across continents to
assess their impact on regional air quality and climate. NASA research-
ers coordinated observations from ground-based sites, aircraft, and
The Cloud Absorption Radiometer (CAR)
NASA satellites, including Aura, Aqua, and Terra, to provide a com- instrument is installed in the nose of
plete picture of pollutant transport to and from the United States and to a Jetstream–31 aircraft for INTEX–B.
validate improved predictive capabilities for understanding changes in Developed at the Goddard Space Flight
atmospheric composition. NASA also integrated INTEX–B findings with Center, CAR acquires imagery of cloud
the National Science Foundation’s Megacity Initiative: Local and Global and Earth surface features and deter-
mines the single-scattering albedo (the
Research Observations (MILAGRO) campaign to study air quality in the
reflective power) of clouds. (NASA)
Mexico City region, as well as surrounding areas affected by the mega-
city’s air quality.

In the upper portions of the atmosphere, ozone protects Earth from ultraviolet radiation. When ozone is generated
near Earth’s surface, however, it can be harmful to crops and human health. Ozone also acts as a greenhouse
gas that can lead to climate change in specific regions. In FY 2006, scientists used the NASA Goddard Institute
for Space Studies (GISS) chemistry model to trace ozone and its role in regional warming when present in Earth’s
upper troposphere. According to GISS findings, ozone is transported efficiently to the Arctic during fall, winter, and
spring, contributing significantly to warming during these months. During the summer months, sunshine destroys
the ozone before it can be transported, so regional warming occurs only over the sight of pollution.

PART 2 • DETAILED PERFORMANCE DATA 91


FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003
6ESS1 For current observations, reduce the cost of acquiring and distributing the data
None None None
Green stream to facilitate adoption by the operational community.
6ESS3 Keep 90 percent of the total on-orbit instrument complement functional throughout
None None None
Green the year.
Mature two to three technologies to the point they can be demonstrated in space or
6ESS4
in an operational environment and annually advance 25 percent of funded technol- None None None
Green
ogy developments one Technology Readiness Level (TRL).
6ESS5 Increase the number of distinct users of NASA data and services.
None None None
Green
6ESS6 Improve level of customer satisfaction as measured by a baselined index obtained
None None None
Yellow through the use of annual surveys.
Demonstrate progress that NASA-developed data sets, technologies and models
6ESS7 enhance understanding of the Earth system leading to improved predictive
None None None
Green capability in each of the six science focus area roadmaps. Progress toward
achieving outcomes will be validated by external review.
Systematically continue to transfer research results from spacecraft, instruments,
6ESS20
data protocols, and models to NOAA and other operational agencies as appropri- None None None
Green
ate.

Performance Shortfalls
6ESS6: The FY 2006 EOSDIS customer satisfaction survey produced a score of 74, a decrease from the very-high
score of 78 in 2005. This score is still above the federal government average of 71.

OUTCOME 3A.2: PROGRESS IN ENABLING IMPROVED PREDICTIVE CAPABILITY FOR WEATHER AND EXTREME WEATHER
EVENTS.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

NASA provides expertise, satellites, and infrastructure to develop new and improved weather forecasting
capabilities for operational agencies, such as the Navy and NOAA, to issue forecasts to protect life, property,
and the Nation’s vital interests. Many of NASA’s Earth-observation research satellites, such as the CloudSat and
the Cloud-Aerosol Lidar and Infrared Pathfinder Satellite Observation (CALIPSO) satellites launched in April 2006,
provide unprecedented views of Earth and enable scientists to study phenomena with greater scope, detail, and
precision than ever before. For example, from these two missions, scientists can study the three-dimensional dis-
tribution of clouds and aerosols, enabling them to track the height of aerosol plumes around the globe. They also
help scientists look at the properties of multi-layered clouds and better assess their impact on climate.

Scientists at NASA’s Goddard Space Flight Center and the University of Maryland at Baltimore County used
observations of cloud tops from the Tropical Rainfall Measuring Mission (TRMM) satellite to improve computer
model forecasts of hurricane winds to better estimate whether a hurricane’s surface winds will strengthen or
weaken. This new capability has benefits for hazard mitigation and the potential to save lives and reduce property
damage associated with major hurricanes.

NASA also flew the DC–8 research aircraft off the coast of West Africa as part of the Agency’s contribution to
the African Monsoon Multidisciplinary Analyses during summer 2006. The DC–8, outfitted as a “virtual satellite,”
provided the most comprehensive sampling of westward-moving waves flowing off the coast of Africa, helping to
answer important but poorly understood question of how and why some of these turn into hurricanes, while others do
not. The combination of in-situ and remote-sensing instruments aboard the aircraft, together with data from NASA
satellites such as Terra, Aqua, Aura, CALIPSO, and CloudSat, should provide a wealth of data that can be used for
scientific study over the next few years.

92 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6ESS1 For current observations, reduce the cost of acquiring and distributing the data
None None None
Green stream to facilitate adoption by the operational community.
6ESS3 Keep 90 percent of the total on-orbit instrument complement functional throughout
None None None
Green the year.
Mature two to three technologies to the point they can be demonstrated in space or
6ESS4
in an operational environment and annually advance 25 percent of funded technol- None None None
Green
ogy developments one Technology Readiness Level (TRL).
6ESS5 Increase the number of distinct users of NASA data and services.
None None None
Green
6ESS6 Improve level of customer satisfaction as measured by a baselined index obtained
None None None
Yellow through the use of annual surveys.
Demonstrate progress that NASA-developed data sets, technologies and models
6ESS7 enhance understanding of the Earth system leading to improved predictive
None None None
Green capability in each of the six science focus area roadmaps. Progress toward
achieving outcomes will be validated by external review.
Systematically continue to transfer research results from spacecraft, instruments,
6ESS20
data protocols, and models to NOAA and other operational agencies as appropri- None None None
Green
ate.

Performance Shortfalls
6ESS6: See Outcome 3A.1, above.

OUTCOME 3A.3: PROGRESS IN QUANTIFYING GLOBAL LAND COVER CHANGE AND TERRESTRIAL AND MARINE
PRODUCTIVITY, AND IN IMPROVING CARBON CYCLE AND ECOSYSTEM MODELS.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

NASA-funded scientists at the University of California, Berkeley, using an integrated global Earth system model,
discovered that increased global warming over the next century will diminish the ocean’s capacity to store carbon
dioxide. This eventually will lead to increased levels of carbon dioxide from human activities in the atmosphere,
further amplifying global warming. NASA’s Orbiting Carbon Observatory (OCO) will be a key tool in characterizing
the global distributions of carbon dioxide, and should enable scientists to determine its sources and sinks, yielding
better understanding of the processes that control atmospheric carbon dioxide. In FY 2006, researchers com-
pleted several system reviews of the OCO spacecraft in preparation for its 2008 launch.

NASA and USGS have worked together on the Landsat program—an environmental remote sensing satellite
program—since 1972 to collect and analyze data on land-cover change and use. This year, NASA-funded
researchers used Landsat imagery and U.S. Census population data from 1973 to 2000 to examine for the first
time the relationship between land-cover and land-use changes in the United States. Researchers learned that
as of 2000, the area of exurban development (areas with housing density between one dwelling per acre and one
dwelling per 40 acres) occupied nearly 15 times the area of urbanized development (areas with a housing den-
sity greater than one housing unit per acre). Exurban areas now cover 25 percent of the 48 contiguous states.
Within the Mid-Atlantic and Southeastern regions, the Appalachian eco-region showed the slowest rate of land
cover change. Exurban growth throughout the United States will impact future urban planning and environmental
monitoring.

NASA also is assessing options for maintaining the availability of Landsat-type land-cover measurements (see
“Risks to Achieving Sub-goal 3A,” above, for more information).

PART 2 • DETAILED PERFORMANCE DATA 93


FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003
6ESS1 For current observations, reduce the cost of acquiring and distributing the data
None None None
Green stream to facilitate adoption by the operational community.
6ESS3 Keep 90 percent of the total on-orbit instrument complement functional throughout
None None None
Green the year.
Mature two to three technologies to the point they can be demonstrated in space or
6ESS4
in an operational environment and annually advance 25 percent of funded technol- None None None
Green
ogy developments one Technology Readiness Level (TRL).
6ESS5 Increase the number of distinct users of NASA data and services.
None None None
Green
6ESS6 Improve level of customer satisfaction as measured by a baselined index obtained
None None None
Yellow through the use of annual surveys.
Demonstrate progress that NASA-developed data sets, technologies and models
6ESS7 enhance understanding of the Earth system leading to improved predictive
None None None
Green capability in each of the six science focus area roadmaps. Progress toward
achieving outcomes will be validated by external review.
Systematically continue to transfer research results from spacecraft, instruments,
6ESS20
data protocols, and models to NOAA and other operational agencies as appropri- None None None
Green
ate.

Performance Shortfalls
6ESS6: See Outcome 3A.1, above.

OUTCOME 3A.4: PROGRESS IN QUANTIFYING THE KEY RESERVOIRS AND FLUXES IN THE GLOBAL WATER CYCLE AND IN
IMPROVING MODELS OF WATER CYCLE CHANGE AND FRESH WATER AVAILABILITY.

FY 2006 FY 2005 FY 2004 FY 2003


Yellow None None None

NASA launched the CloudSat satellite in April 2006. As expected, CloudSat is able to characterize all major cloud
system types, and its radar is able to penetrate all but the heaviest rainfall, enabling simultaneous imaging of storm
clouds and precipitation.

During FY 2006, the Tropospheric Emission Spectrometer aboard NASA’s Aura satellite yielded breakthrough
observations that helped identify the primary processes and sources controlling the global water cycle in the atmo-
sphere. By comparing the relative concentrations of different isotopic types of water vapor, scientists determined
the extent of regional re-evaporation, a process where rainfall evaporates and is recycled back into clouds. The
observations revealed that in tropical regions, up to 70 percent of precipitation is re-evaporated into clouds, proving
that the re-evaporation process is a major component of cloud formation and energy transport.

Greenland hosts the largest reservoir of fresh water in the northern hemisphere. Any substantial changes in the
mass of its ice sheet will affect global sea levels, ocean circulation, and Earth’s climate system. Using data from
GRACE—a mission with the unique ability to measure monthly mass changes for an entire ice sheet—NASA
scientists measured a decrease in the mass of the Greenland ice cap due to melting. GRACE also detected that
the thinning rate of Greenland’s ice sheet (approximately 39 cubic miles a year between 2002 and 2005) is higher
than previously published estimates.

94 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6ESS1 For current observations, reduce the cost of acquiring and distributing the data
None None None
Green stream to facilitate adoption by the operational community.
6ESS3 Keep 90 percent of the total on-orbit instrument complement functional throughout
None None None
Green the year.
Mature two to three technologies to the point they can be demonstrated in space or
6ESS4
in an operational environment and annually advance 25 percent of funded technol- None None None
Green
ogy developments one Technology Readiness Level (TRL).
6ESS5 Increase the number of distinct users of NASA data and services.
None None None
Green
6ESS6 Improve level of customer satisfaction as measured by a baselined index obtained
None None None
Yellow through the use of annual surveys.
Demonstrate progress that NASA-developed data sets, technologies and models
6ESS7 enhance understanding of the Earth system leading to improved predictive
None None None
Green capability in each of the six science focus area roadmaps. Progress toward
achieving outcomes will be validated by external review.
Systematically continue to transfer research results from spacecraft, instruments,
6ESS20
data protocols, and models to NOAA and other operational agencies as appropri- None None None
Green
ate.
6ESS22 Complete Global Precipitation Measurement (GPM) Confirmation Review.
None None None
White

Performance Shortfalls
Outcome 3A.4: Research results in 2006 enabled progress in understanding and modeling the water cycle.
However, delays in the development and launch of the Global Precipitation Measurement (GPM) mission and the
NPOESS Preparatory Project (NPP) will impact NASA’s progress in this science focus area.

6ESS6: See Outcome 3A.1 above.

6ESS22: NASA management deferred the GPM mission. NASA will develop an Earth science roadmap based on
the mission priorities established in the decadal survey expected from the National Research Council in December
2006. The Agency will use the roadmap to re-baseline the support available to GPM by the spring of 2007.

The May 20, 2006, eruption of Soufriere Hills Volcano on Mont-


serrat sent a cloud of ash and volcanic gas nearly 17 kilometers
(55,000 feet) into the atmosphere. Intermingled with the volcanic
plume was a high concentration of sulfur dioxide, measured by
the AIRS instrument on Aqua. Once in the atmosphere, chemi-
cal reactions (oxidation) turn sulfur dioxide into sulfate aerosol
particles that create a bright haze that reflects sunlight back into
space. Since less sunlight reaches the Earth, the sulfate aerosols
have a cooling effect on the climate. The effect is typically region-
al, but if enough of the gas reaches high into the stratosphere,
the part of the atmosphere that is 20 to 50 kilometers above the
surface of the Earth, temperatures around the world can drop.
NASA built AIRS to help scientists gain a better understanding of
weather and climate, including how gases like sulfur dioxide and
the aerosols they produce impact temperatures and weather pat-
terns. (F. Prata, Norwegian Inst. for Air Research)

PART 2 • DETAILED PERFORMANCE DATA 95


OUTCOME 3A.5: PROGRESS IN UNDERSTANDING THE ROLE OF OCEANS, ATMOSPHERE, AND ICE IN THE CLIMATE SYSTEM
AND IN IMPROVING PREDICTIVE CAPABILITY FOR ITS FUTURE EVOLUTION.

FY 2006 FY 2005 FY 2004 FY 2003


Yellow None None None

NASA funds research and satellite observations to study the dynamics between the oceans, atmosphere, and ice
reservoirs. Studying the relationship of these systems improves predictions of future climate activity and increases
understanding of climate processes. In FY 2006, observations from NASA’s Aura satellite showed that when a sea
surface temperature exceeds about 80 degrees Fahrenheit, water evaporated from the warm surface is carried
to the upper atmosphere through the formation of towering cumulus clouds (or thunderheads). This warm water
vapor eventually evaporates ice particles in the high-altitude clouds, leaving increased water vapor concentra-
tions in the upper atmosphere. This finding indicates that the cloud-induced moistening of the tropical upper
troposphere leads to about three times more water vapor output than is expected in the absence of the clouds.

Scientists at NASA’s Jet Propulsion Laboratory used satellite observations to measure the complete cycle of
atmospheric water movement over the South American continent, ocean to ocean. Using data from NASA’s
QuikScat, GRACE, and TRMM satellites, researchers confirmed that the amount of atmospheric water flowing into
the continent as rain and snow was equal to the amount of water returned to the ocean by rivers. This finding
represents the first direct observations of the seasonal cycle of continental water balance.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6ESS1 For current observations, reduce the cost of acquiring and distributing the data
None None None
Green stream to facilitate adoption by the operational community.
6ESS3 Keep 90 percent of the total on-orbit instrument complement functional throughout
None None None
Green the year.
Mature two to three technologies to the point they can be demonstrated in space or
6ESS4
in an operational environment and annually advance 25 percent of funded technol- None None None
Green
ogy developments one Technology Readiness Level (TRL).
6ESS5 Increase the number of distinct users of NASA data and services.
None None None
Green
6ESS6 Improve level of customer satisfaction as measured by a baselined index obtained
None None None
Yellow through the use of annual surveys.
Demonstrate progress that NASA-developed data sets, technologies and models
6ESS7 enhance understanding of the Earth system leading to improved predictive
None None None
Green capability in each of the six science focus area roadmaps. Progress toward
achieving outcomes will be validated by external review.
Systematically continue to transfer research results from spacecraft, instruments,
6ESS20
data protocols, and models to NOAA and other operational agencies as appropri- None None None
Green
ate.
6ESS23 Complete Operational Readiness Review for the NPOESS Preparatory Project
None None None
Red (NPP).

Performance Shortfalls
Outcome 3A.5: Cost overruns and technical difficulties delayed the NPOESS Preparatory Project (NPP) mission,
which will impact NASA’s progress in this science focus area. Program funding supports the NPP 2009 launch
date.

6ESS6: See Outcome 3A.1 above.

6ESS23: Due to late delivery of the key Visible/Infrarerd Imager/Radiometer Suite (VIIRS) instrument from a
program partner, NASA moved the Operational Readiness Review for NPP to September 2009.

96 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

OUTCOME 3A.6: PROGRESS IN CHARACTERIZING AND UNDERSTANDING EARTH SURFACE CHANGES AND VARIABILITY OF
EARTH’S GRAVITATIONAL AND MAGNETIC FIELDS.
FY 2006 FY 2005 FY 2004 FY 2003
Green None None None

The measurements of changes in the gravity field over time from the GRACE mission yielded the first uniform mass
balance estimates for the Greenland and Antarctic polar ice caps, indicating significant and perhaps accelerating
loss of ice mass. During FY 2006, the GRACE mission also yielded other results:
• Circum-Antarctic deep-ocean current variability;
• Regional water accumulation data demonstrating that algorithms show continual improvement for estimating
biweekly to multi-year trends and periodicities in water storage over land regions, from continental areas to
regional drainage basins;
• The first complete signature of land surface displacements due to a major earthquake; and
• Observations showing that the movement of the ocean floor resulting from the Aceh Earthquake of
December 2004 caused a gravity change on Earth. This is the first observation of the stretching within Earth’s
crust caused by an undersea earthquake. The finding indicates that GRACE’s measurements will provide a
new global capability to enhance understanding of the release of stress by large earthquakes.
NASA continues to support the measurement of Earth’s magnetic field variability. For example, the European
Space Agency’s satellite constellation, Swarm (to be launched in 2009), uses a NASA-developed, comprehensive
model for geomagnetic modeling. NASA also supports the measurement of ultra-low-frequency electromagnetic
signals in California to study possible earthquake precursors.

In July 2006, NASA announced progress in understanding earthquake causes and effects with the development
of a rapid earthquake-magnitude evaluation technique that reduces the time needed to determine the magnitude
of large earthquakes from hours to minutes. The system is crucial to identifying possible tsunami-producing
earthquakes, enabling early activation of disaster response teams. The system builds on the NASA-developed,
real-time GPS precision positioning capability, which can feed data into the real-time tsunami modeling system
being developed by NOAA. The USGS also has expressed interest in working with NASA to develop a similar
capability to augment its seismometer-based networks. The real-time GPS capability also could be deployed
aboard ocean buoys to aid in detecting passing tsunamis.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6ESS1 For current observations, reduce the cost of acquiring and distributing the data
None None None
Green stream to facilitate adoption by the operational community.
6ESS3 Keep 90 percent of the total on-orbit instrument complement functional throughout
None None None
Green the year.
Mature two to three technologies to the point they can be demonstrated in space or
6ESS4
in an operational environment and annually advance 25 percent of funded technol- None None None
Green
ogy developments one Technology Readiness Level (TRL).
6ESS5 Increase the number of distinct users of NASA data and services.
None None None
Green
6ESS6 Improve level of customer satisfaction as measured by a baselined index obtained
None None None
Yellow through the use of annual surveys.
Demonstrate progress that NASA-developed data sets, technologies and models
6ESS7 enhance understanding of the Earth system leading to improved predictive
None None None
Green capability in each of the six science focus area roadmaps. Progress toward
achieving outcomes will be validated by external review.

PART 2 • DETAILED PERFORMANCE DATA 97


FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003
Systematically continue to transfer research results from spacecraft, instruments,
6ESS20
data protocols, and models to NOAA and other operational agencies as appropri- None None None
Green
ate.

Performance Shortfalls
6ESS6: See Outcome 3A.1, above.

OUTCOME 3A.7: PROGRESS IN EXPANDING AND ACCELERATING THE REALIZATION OF SOCIETAL BENEFITS FROM EARTH
SYSTEM SCIENCE.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

NASA’s Applied Science Program collaborates with other federal agency partners to expand their use of NASA
Earth science research results. The Applied Science Program activities provide innovative benefits to the Nation in
12 focus areas: Agricultural Efficiency, Air Quality, Aviation, Carbon Management, Coastal Management, Disaster
Management, Ecological Forecasting, Energy Management, Homeland Security, Invasive Species, Public Health,
and Water Management. In FY 2006, the program made progress toward this Outcome through 147 funded activi-
ties that yielded results in all 12 focus areas. One project included an evaluation of the NOAA Harmful Algal Blooms
Observation System prototype, which will alert coastal management officials when populations of phytoplankton
(i.e., harmful algal blooms) grow out of control, threaten coastal ecosystems, or pose hazards to human health. The
program also validated a prototype system that integrates NASA Earth science results into the Center for Disease
Control (CDC)-sponsored ArboNET/Plague Surveillance System. This CDC system tracks insect populations that
carry and transmit disease-producing microorganisms. NASA data and infrastructure support through the Regional
Visualization and Monitoring System (SERVIR) Program also improved ecological forecasting and disaster manage-
ment in Central America. NASA research enhanced aviation weather-hazard nowcasting (forecasting in a zero- to
six-hour timeframe) and improved short-term forecasting products developed by the Federal Aviation Administra-
tion. NASA’s research also improved global crop monitoring performed by the U.S. Department of Agriculture.

The National Research Council is evaluating NASA’s progress toward this Outcome.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6ESS1 For current observations, reduce the cost of acquiring and distributing the data
None None None
Green stream to facilitate adoption by the operational community.
Benchmark the assimilation of observations and products in decision support
6ESS21
systems serving applications of national priority. Progress will be evaluated by the None None None
Yellow
Committee on Environmental and National Resources.

Performance Shortfalls
6ESS21: NASA completed this benchmarking in support of such areas as agricultural efficiency, air quality, avia-
tion, disaster management, and public health. However, the external evaluation was postponed, primarily due to
delays related to committee members’ schedules.

98 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

Sub-goal 3B Understand the Sun and its effects on Earth and the solar
system.
Life on Earth is linked to the behavior of the Sun. The Sun’s
energy output is fairly constant when averaged over thousands of
years, yet highly variable on an 11-year cycle. Moreover, short-
term events like solar flares and coronal mass ejections (CMEs)
can change drastically solar emissions over the course of a single
second. All of the solar system’s planets orbit within the outer
layers of the Sun’s atmosphere, and some planetary bodies, like
Earth, have an atmosphere and magnetic field that interacts with
solar wind. While Earth’s magnetic field protects life, it also acts
as a battery, storing energy from solar wind until it is released,
producing “space weather” that can disrupt communications,
navigation, and power grids, damage satellites, and threaten the
health of astronauts.

NASA researchers study the Sun and its influence on the solar
system as elements of a single, interconnected Sun–Earth sys- A technician readies a high-gain antenna for
tem using a group of satellites that form the Heliophysics Great vibration testing at the Johns Hopkins University
Observatory. NASA seeks to understand the fundamental physics Applied Physics Laboratory in Laurel, Maryland,
behind Sun–planet interactions and use this information to pro- in late 2005. This antenna later was attached
tect humans and electronics in space and on Earth. NASA also to the STEREO “A” observatory at the Goddard
Space Flight Center. NASA will launch STEREO
studies specific space environmental hazards to help the
in early FY 2007. (NASA/JHU–APL)
Agency design, build, and operate safe and stable exploration
spacecraft.

Risks to Achieving Strategic Sub-goal 3B


Most of the missions that make up the multi-national Heliophysics Great Observatory, including the Solar and
Heliospheric Observatory (SOHO), Voyagers 1 and 2, and the Fast Auroral Snapshot Explorer (FAST), are past their
initial design life and starting to show signs of age. Some satellites already have fallen victim to age. For example,
the Imager for Magnetopause-to-Aurora Global Exploration (IMAGE), which was designed for a two-year mission,
failed in FY 2006 after almost six years of successful operation. By operating this group of spacecraft as a single
observational system, researchers can collect data for a variety of models to fill observational gaps and provide pre-
dictions of tomorrow’s space weather. NASA plans to launch new missions in FY 2007 to refresh the Heliophysics
Great Observatory: the Solar Terrestrial Relations Observatory (STEREO), the Aeronomy of Ice in the Mesosphere
(AIM), and the Time History of Events and Macroscale Interactions (THEMIS) mission. The joint NASA–Japanese
Aerospace Exploration Agency Solar–B mission, now called Hinode (or “sunrise” in Japanese), launched from
Japan on September 22, 2006. However, NASA’s ability to launch future small, less-expensive missions is threat-
ened by the rising cost of smaller launch vehicles and escalating development costs. An inability to sustain new
heliophysics missions could create capability gaps for the Heliophysics Great Observatory.

Resources, Facilities, and Major Assets


NASA’s fleet of operational satellites, as well as missions currently in development, are the greatest assets contrib-
uting to the successful achievement of Sub-goal 3B. These satellites represent considerable investments in time,
money, and workforce skills by NASA and partners across the country and around the world.

NASA’s Heliophysics Data Environment—a standardized, electronic tool to collect, store, manage, and dis-
tribute Sun–Earth mission data—harnesses the full benefit of heliophysics science conducted by NASA and
program partners. The project uses Virtual Observatories that link together the world’s science community and
available astronomy and astrophysics data using computer technology. In FY 2006, NASA added five new Virtual
Observatories to the Heliophysics Data Environment.

PART 2 • DETAILED PERFORMANCE DATA 99


All NASA space science data is archived permanently by the National Space Science Data Center (NSSDC),
located at the Goddard Space Flight Center. NSSDC’s Space Physics Data Facility hosts an archive that consists
of Web-based services for survey and high-resolution data, trajectories, and modeling software. The facility delivers
value-added services and leads in the definition, development, operation, and promotion of collaborative projects.

The cost of performance for Sub-goal 3B in FY 2006 was $974.71 million.

Outcome Ratings APG Ratings


8%
1

3
11

100% 92%

Under Sub-goal 3B, NASA is on track to Under Sub-goal 3B, NASA achieved 11 of 12
achieve all 3 Outcomes. APGs.

OUTCOME 3B.1: PROGRESS IN UNDERSTANDING THE FUNDAMENTAL PHYSICAL PROCESSES OF THE SPACE ENVIRONMENT
FROM THE SUN TO EARTH, TO OTHER PLANETS, AND BEYOND TO THE INTERSTELLAR MEDIUM.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

Understanding how space


Most of the planets in the solar system orbit
weather originates and evolves along a similar plane, almost like they were sit-
is the first step toward pre- ting on a table around the Sun. As the two
dicting space weather events Voyager spacecraft journeyed beyond the
that pose a potential threat to planets, Voyager 1 flew “north” (above the
Earth and space explorers. In plane) and Voyager 2 flew “south” (below the
FY 2006, NASA research- plane), as shown in this illustration. During FY
2006, Voyager 2 discovered that the termina-
ers identified sources of solar tion shock (shown in bright blue) is 840 million
energetic particles, observed miles closer to the Sun in the south than ob-
variations in the thickness of served by Voyager 1 in the north. As a result,
the Sun’s atmosphere in con- Voyager 2 will cross the termination shock a
nection with the 11-year solar year earlier than expected. Voyager 1 crossed
cycle, and found evidence that the termination shock in FY 2005. (NASA)
solar flare-accelerated ions and
electrons may originate from
separate locations.

Below the plane of the planets, the Voyager 2 spacecraft observed evidence of the solar system’s termination
shock—the shock wave that forms as solar wind reaches the boundary between the edge of the solar system and
interstellar space—at a distance of about 840 million miles closer to the Sun than observed by Voyager 1 in the
north. This difference shows a distortion in the shape of the heliosphere—the giant magnetic bubble containing
the solar system—likely resulting from an inclined interstellar magnetic field pressing inward on the heliosphere from
the south. The compressed shape of the heliosphere in the south means that Voyager 2 probably will cross the

100 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

termination shock a year ahead of expectations, joining Voyager 1 in exploring the heliosheath, the final frontier of
the solar system.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in understanding the structure and dynamics
6ESS11 5SEC9 4SEC11 3S7
of the Sun and solar wind and the origins of solar variability. Progress toward
Green Blue Green Green
achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in determining the evolution of the heliosphere
6ESS12
and its interaction with the galaxy. Progress in achieving outcomes will be validated None None None
Green
by external expert review.
Successfully demonstrate progress in discovering how magnetic fields are created
6ESS14 5SEC12 4SEC14
and evolve and how charged particles are accelerated. Progress in achieving None
Green Blue Green
outcomes will be validated by external expert review.
Successfully demonstrate progress in understanding coupling across multiple scale
6ESS15 5SEC13 4SEC15
lengths and its generality in plasma systems. Progress in achieving outcomes will None
Green Green Green
be validated by external expert review.
6ESS17 Complete the Solar Dynamics Observatory (SDO) spacecraft structure and begin 5SEC2
None None
Green Integration and Test (I&T). Green
6ESS18 Initiate Geospace Phase A studies.
White None None
Green

OUTCOME 3B.2: PROGRESS IN UNDERSTANDING HOW HUMAN SOCIETY, TECHNOLOGICAL SYSTEMS, AND THE HABITABIL-
ITY OF PLANETS ARE AFFECTED BY SOLAR VARIABILITY AND PLANETARY MAGNETIC FIELDS.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

In FY 2006, NASA advanced the understanding of both


short- and long-term variations in solar emissions. This is
important progress because these emissions can increase
densities in Earth’s ionosphere and produce magnetic
storms within Earth’s magnetosphere that occasionally
disable satellites, power grids, and other critical technol-
ogies. In FY 2006, NASA developed a new model that
allows researchers to fly virtual satellites through simula-
tions of Earth’s Van Allen Belts, radiation belts of high-
energy particles (mainly protons and electrons) held cap-
tive by the magnetic influence of Earth. The model shows During FY 2006, weather on Earth was found to have
how high-energy particles trapped in the belts would a surprising connection to space weather in the electri-
cally charged upper atmosphere, or ionosphere. This
affect optical and thermal coatings as the virtual satellite
discovery will help improve forecasts of turbulence in the
orbits through a selected region. The results will help ionosphere, which can disrupt radio signals from satel-
NASA select coatings based on a satellite’s planned orbit, lites including communications satellites and the Global
giving satellites additional protection from the effects of Positioning System. Using pictures from IMAGE, the
destructive high-energy particles throughout its mission. team discovered four mysteriously bright regions in the
Appleton Anomalies that were 20 to 30 percent denser
NASA has shown that the impact of the Sun on space than average. Three of these bright zones were located
weather around Earth is different for dense clouds of solar over tropical rainforests with lots of storm activity: the
Amazon Basin in South America, the Congo Basin in
material than for long high-speed streams of gas. Space
Africa, and Indonesia. A fourth region appeared over
storms triggered by magnetic clouds tend to be brief, and the Pacific Ocean. Researchers confirmed that thunder-
produce new, transient radiation belts, great auroras, and storms over the three tropical rainforest regions produce
disruptive ground currents. Space storms triggered by rising tides of hot air that were altering the structure of the
high-speed streams are longer in duration, more likely to ionosphere. (NASA)

PART 2 • DETAILED PERFORMANCE DATA 101


affect spacecraft, and produce more intense radiation belts. Studies of these differences are important to under-
standing the effects of solar events on the Earth system.

The charged particles (or plasma) trapped in the Van Allen Belts are drained continuously and replenished through
dynamic interactions between the Sun and Earth. This interaction can alter the size and intensity of the radiation
belts, creating space weather that affects directly the performance of satellites. NASA has discovered how one of
these processes replenishes the high-energy radiation in the belts. NASA research revealed how low-frequency
electromagnetic waves quickly accelerate plasma in the radiation belts. These waves, which are common in the
boundary between the radiation belts and the cold, dense plasma from the upper ionosphere, are a primary source
for replenishing the radiation belts.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in developing the capability to predict solar
6ESS8 activity and the evolution of solar disturbances as they propagate in the heliosphere 5SEC6 4SEC8 3S7
Green and affect the Earth. Progress toward achieving outcomes will be validated by Green Green Green
external expert review.
Successfully demonstrate progress in specifying and enabling prediction of changes
6ESS9 5SEC7 4SEC9 3S8
to the Earth’s radiation environment, ionosphere, and upper atmosphere. Progress
Green Green Green Green
toward achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in understanding the role of solar variability
6ESS10 5SEC8 4SEC10
in driving space climate and global change in the Earth’s atmosphere. Progress None
Green Green Blue
toward achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in understanding the response of magneto-
6ESS13 5SEC11 4SEC13
spheres and atmospheres to external and internal drivers. Progress in achieving None
Green Green Green
outcomes will be validated by external expert review.
6ESS16 Successfully launch the Solar Terrestrial Relations Observatory 5SEC1
None None
Yellow (STEREO). Yellow
6ESS17 Complete the Solar Dynamics Observatory (SDO) spacecraft structure and begin 5SEC2
None None
Green Integration and Test (I&T). Green
6ESS18 Initiate Geospace Phase A studies. 5SEC4
None None
Green White
6ESS19 Publish Solar Sentinels Science Definition Team report.
None None None
Green

Performance Shortfalls
6ESS16: NASA postponed the STEREO mission launch due to problems with the Delta II launch vehicle second-
stage tanks.

OUTCOME 3B.3: PROGRESS IN DEVELOPING THE CAPABILITY TO PREDICT THE EXTREME AND DYNAMIC CONDITIONS IN
SPACE IN ORDER TO MAXIMIZE THE SAFETY AND PRODUCTIVITY OF HUMAN AND ROBOTIC EXPLORERS.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

To safeguard astronauts and robotic assets in space, researchers must characterize the extremes and variability of
solar-induced events. The SOHO team made progress toward predicting potentially harmful solar events during
FY 2006 by watching for wave motions excited in the Sun’s interior that are indicative of areas of high activity. This
new method allows scientists to see almost the entire far side of the Sun. Since the Sun rotates every 27 days
relative to Earth, a solar flare could erupt around the horizon at any time. This new method for monitoring the entire
surface of the Sun will provide early warning of solar events, helping NASA protect astronauts in space.

102 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

Scientists supporting NASA’s Living with a Star Program created a new model of the Sun’s dynamo, which
described the peaks of the last eight solar cycles, that has promise for predicting future solar-cycle activity. If
successful, this model will allow NASA to plan for future high-activity cycles and protect human and robotic explor-
ers. NASA also developed a simulation of the slowly evolving solar corona that can predict conditions that could
produce CMEs. CMEs occur when a magnetic field under stress snaps, releasing billions of pounds of accelerated
plasma, charged particles that can damage electronics and harm unprotected astronauts. In March 2006, NASA
testing showed that the model could successfully predict the structure and appearance of the corona during a total
solar eclipse.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6ESS16 Successfully launch the Solar Terrestrial Relations Observatory (STEREO). 5SEC1
None None
Yellow Yellow
6ESS17 Complete the Solar Dynamics Observatory (SDO) spacecraft structure and begin 5SEC2
None None
Green Integration and Test (I&T). Green
6ESS18 Initiate Geospace Phase A studies. 5SEC4
None None
Green White
6ESS19 Publish Solar Sentinels Science Definition Team report.
None None None
Green

Performance Shortfalls
6ESS16: See Outcome 3B.2 above.

NASA’s ST-5 Satellites Push


Technological Boundaries
In FY 2006, NASA tested an innovative technology for micro-satel-
lites that operate as a group. Space Technology 5 (ST5), a group of
three spacecraft, was launched from a modified Pegasus XL rocket
on March 22, 2006. Each satellite weighed about 55 pounds and
was the size of a birthday cake. After launching, the micro-satellites
positioned themselves in a “string of pearls” constellation, approxi-
mately 25 to 90 miles apart.
Despite their small size, these satellites came fully loaded and car-
ried a scientific payload that mapped the intensity and direction of
magnetic fields within the inner magnetosphere. The main goal of
the mission was to demonstrate the benefits of a group of small,
low-cost spacecraft taking measurements at the same time in dif- Engineers build one of three ST5 micro-satellites at the Goddard
ferent locations. ST5 helped NASA learn how to build efficiently Space Flight Center. NASA then shipped the micro-satellites to
identical micro-satellites, shortening development time and lowering Vandenberg Air Force Base, California, for testing and launch.
costs for future micro-satellite missions. ST5 stopped operations on (NASA)
June 30, 2006, after a successful 90-day mission.

PART 2 • DETAILED PERFORMANCE DATA 103


Sub-goal 3C Advance scientific knowledge of the solar system, search for
evidence of life, and prepare for human exploration.
NASA’s robotic science missions are paving the way for human space exploration by studying and characterizing
alien environments, identifying possible resources, validating new capabilities, and delivering the infrastructure that
will enable safe and effective human missions.

Robotic explorers also gather data to help scientists understand how the planets formed, what triggered different
evolutionary paths among planets, and how Earth originated, evolved, and became habitable. To search for evi-
dence of life beyond Earth, scientists use this data to map zones of habitability, study the chemistry of alien worlds,
and unveil the processes that lead to conditions necessary for life. Moreover, NASA scientists gain knowledge from
robotic exploration that provides valuable insight into the nature of life on Earth.

Knowledge about the solar system helps protect life on Earth. For example, through the Near Earth Object
Observation Program, NASA identifies and categorizes near-Earth objects (e.g., asteroids and comets) that could
threaten life on Earth.

Risks to Achieving Sub-goal 3C


Interplanetary spacecraft for solar system exploration are expensive and complex and often require long lead-times
for planning and development. Once launched, the travel times to the spacecraft’s destinations may take months
or years.

Assessments
In FY 2006, the Office of Management and Budget (OMB) assessed the Solar System Exploration Theme with
OMB’s Program Assessment Rating Tool (PART). OMB assessed the overall program as “Effective,” the highest
rating available, with the following scores by rating area:
• Program Purpose and Design—100%
• Strategic Planning—100%
• Program Management—91%
• Program Results/Accountability—80%
The lower scores under Program Management and Program Results/Accountability were due to on-going issues
with Agency-wide financial management practices and minor programmatic slips. NASA is making progress in
improving the Agency’s financial management system.

Resources, Facilities, and Major Assets


NASA’s progress toward achieving Sub-goal 3C rests on the success of numerous planetary science orbiters,
solar system probes, rovers, landers, and sample return missions. These missions are supported by laboratories
at NASA Centers, including the Goddard Space Flight Center and the Jet Propulsion Laboratory, and at universities
around the country. These laboratories provide years—and occasionally decades—of mission management, data
collection, and analysis. Some missions, including Cassini/Huygens and Rosetta, are joint projects between NASA
and international partners.

NASA’s Planetary Data System (PDS) archives data by areas—atmospheres, geosciences, imaging, planetary
plasma interactions, and small bodies—and makes data available to the planetary sciences community. Mission
principal investigators comply with PDS standards to ensure the integrity and long-term usability of datasets. PDS
is managed by NASA’s National Space Science Data Center, the permanent archive for all NASA space science
data, located at the Goddard Space Flight Center. NASA also supports extraterrestrial sample curation (storage
and oversight of material returned from space) at the Johnson Space Center.

The cost of performance for Sub-goal 3C in FY 2006 is $1,948.93 million.

104 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

Stardust Samples Amaze Scientists


NASA’s Stardust mission to explore comet Wild 2 successfully returned to Earth in
a picture perfect landing on January 15, 2006. The spacecraft collected samples
of gas and dust from the comet. “Ten years of planning and seven years of flight
operations were realized early this morning when we successfully picked up our
return capsule off of the desert floor in Utah,” said Tom Duxbury, Stardust project
manager at NASA’s Jet Propulsion Laboratory, Pasadena, Calif. “The Stardust
project has delivered to the international science community material that has
been unaltered since the formation of our solar system.”
In March, scientists discovered that dust samples from the comet unexpectedly Above: Donald Brownlee,
contained mineral particles, such as Olivine, formed under high temperatures not Stardust principal investi-
gator with the University of
usually associated with the frigid region known as the Kuiper belt where Wild 2
Washington, flashes a victory
orbits. This finding alters the traditional view that comets are made of ice and sign for the successful arrival
dust composed largely of interstellar material gathered on the outskirts of the of Stardust material at the
solar system. Instead, the finding suggests that the Sun may have spewed par- Johnson Space Center in Jan-
ticles outward as its dusty disk, which eventually formed the solar system, swirled uary 2006. (NASA)
inward around the Sun like water circling a drain. Left: Comet particles are
trapped in aerogel in this pho-
Stardust collected massive quantities of dust samples within each aerogel cham- to taken of a Stardust sample.
ber. Due to the sample size, NASA and the Planetary Society posted photos from (NASA/JPL)
an automatic scanning microscope of the samples to the Stardust@home Web
site and encouraged volunteers to search the photos for dust samples. Over
115,000 aspiring stardust hunters have pre-registered to search these photos.

Outcome Ratings APG Ratings


4%
1
17%
4

4
18

100% 79%

Under Sub-goal 3C, NASA is on track to Under Sub-goal 3C, NASA achieved 18 of 23
achieve all 4 Outcomes. APGs.

OUTCOME 3C.1: PROGRESS IN LEARNING HOW THE SUN’S FAMILY OF PLANETS AND MINOR BODIES ORIGINATED AND
EVOLVED.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

Images from the Cassini spacecraft proved the existence of tiny “moonlets” in Saturn’s rings—perhaps as many as
10 million within one of Saturn’s rings alone. The moonlets’ existence could help researchers determine if Saturn’s
rings formed as a result of a cataclysmic break-up of an orbiting body or if they are composed of the remnants from
the disk of material that formed Saturn and its moons.

In a related finding, NASA researchers used the Hubble Space Telescope to image Uranus’ ring system and discov-
ered a dynamic interaction between meteoroids, Uranus’ moons, and the planet’s dusty rings. The Hubble images

PART 2 • DETAILED PERFORMANCE DATA 105


Careful analysis of the highest-resolution images taken
by Cassini’s cameras as the spacecraft slipped into
Saturn orbit revealed the four faint, propeller-shaped
double-streaks in an otherwise bland part of the
mid–A ring. Imaging scientists believe the “propellers”
are the first direct observation of the dynamical effects
of small moonlets, approximately 100 meters (300 feet)
in diameter. These moonlets represent a hitherto un-
seen size-class of particles orbiting within the rings.
The propellers are about 5 kilometers (3 miles) long
from tip to tip, and the radial offset (the “leading” dash
is slightly closer to Saturn) is about 300 meters (1,000
feet). (NASA/JPL/Space Science Institute)

revealed that meteoroids continually impact Uranus’ moons, providing fresh dust and replenishing the rings, which
are depleted through gravitational forces. This chaotic process of replenishing helps explain how planetary systems
may have formed.

For the first time, Hubble imaged the dwarf planet Eris (formerly known as the 10th planet, or Xena) and found that
it is only slightly larger than Pluto. Eris is 10 billion miles from Earth with a diameter a little more than half the width
of the United States, but it is one of the brightest, most reflective objects in the solar system, possibly due to fresh
methane frost on its surface.

New discoveries, like the dwarf planet Eris, the binary nature of Pluto and Charon, and other dwarf planetoids
in the Kuiper belt, have ignited a heated debate among astronomers concerning the taxonomy of planets and
fueled an investigation into the role of minor planets in the solar system. In January 2006, NASA launched the New
Horizons spacecraft on a nine-year trip to Pluto. Data collected from New Horizons will help scientists understand the
processes of planet formation and clarify the differences, if any, between planets and planetoids.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in understanding the initial stages of planet
6SSE7 5SSE7 4SSE12
and satellite formation. Progress toward achieving outcomes will be validated by None
Green Green Yellow
external expert review.
Successfully demonstrate progress in understanding the processes that determine
6SSE8 the characteristics of bodies in our solar system and how these processes 5SSE8 4SSE13 3S3
Green operate and interact. Progress toward achieving outcomes will be validated Blue Green Green
by external expert review.
Successfully demonstrate progress in learning what our solar system can tell us
6SSE10 5SSE10 4SSE15
about extra-solar planetary systems. Progress toward achieving outcomes will be None
Green Blue Green
validated by external expert review.
Successfully demonstrate progress in determining the nature, history, and
6SSE11 5SSE11 4SSE16
distribution of volatile and organic compounds in the solar system. Progress None
Green Green Green
toward achieving outcomes will be validated by external expert review.
6SSE26 Successfully return Stardust science samples to Earth.
None None None
Green
6SSE27 Successfully launch Dawn spacecraft.
None None None
Yellow
6SSE28 Successfully complete MErcury Surface, Space ENvironment, GEochemistry, and
None None None
White Ranging (MESSENGER) flyby of Venus.

Performance Shortfalls
6SSE27: NASA postponed the Dawn mission launch until June 2007 due to technical delays and cost issues. The
mission will study the dwarf planets Ceres and Vesta.

106 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

6SSE28: NASA erroneously included this APG in the FY 2006 Performance Plan. MESSENGER’s scheduled flyby
of Venus is October 23, 2006 (FY 2007).

OUTCOME 3C.2: PROGRESS IN UNDERSTANDING THE PROCESSES THAT DETERMINE THE HISTORY AND FUTURE OF
HABITABILITY IN THE SOLAR SYSTEM, INCLUDING THE ORIGIN AND EVOLUTION OF EARTH’S BIOSPHERE AND THE
CHARACTER AND EXTENT OF PREBIOTIC CHEMISTRY ON MARS AND OTHER WORLDS.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

NASA’s Cassini spacecraft discovered liquid water


reservoirs that erupt like geysers on Saturn’s moon,
Enceladus. These water plumes continuously recoat
the moon’s surface with highly reflective ice, making it
one of the brightest objects in the solar system. The
rare occurrence of liquid water so near the surface rais-
es new questions about this mysterious moon and the
solar system. If Cassini’s discovery is correct, the solar
system could be more diverse than previously theorized,
possibly including environments suitable for life. Other
moons in the solar system have liquid water oceans
covered by kilometers of icy crust, but the pockets of MRO spotted the long-lived Opportunity rover as it ex-
liquid water on Enceladus may be just meters below the plored the edge of Victoria Crater. The level of detail in
surface. NASA plans further observations in the spring the photo from the high-resolution camera on MRO will
of 2008 when the Cassini spacecraft will fly within 350 help guide the rover’s exploration of Victoria. Images from
kilometers (about 220 miles) of Enceladus. NASA’s Mars Global Surveyor, orbiting the Red Planet
since 1997, prompted the rover team to choose Victoria
On Mars’ surface, Mars Exploration Rovers, Spirit two years ago as the long-term destination for Opportu-
nity. Exposed geological layers in the cliff-like portions of
and Opportunity, continue to function, gathering a full Victoria’s inner wall appear to record a longer span of Mars’
Martian year data-set that provides detailed daily and environmental history than similar strata that the rover has
seasonal changes in weather, temperature, and dust studied in smaller craters. Victoria is five times larger than
devil action. Spirit and Opportunity also collected any crater Opportunity has visited during its Martian trek.
geological data that revealed part of Mars’ past environ- (NASA/JPL/UA)
ment, including evidence for the presence of water.

In August 2006, the Mars Odyssey spacecraft completed its first extended mission to study the Martian surface
and its geochemical composition. In addition to assessing the abundance of water, the Gamma-Ray Spectrometer
suite onboard Odyssey collected data on the variations in atmospheric argon, traced the planetary carbon-diox-
ide cycle, and mapped the global distribution of important rock-forming elements, including iron, chlorine, silicon,
potassium, and thorium.

NASA’s Mars Reconnaissance Orbiter (MRO) achieved its science orbit on September 12, 2006, and began
deploying its antenna and removing lens caps from its instruments. It will begin main science investigations in
November. MRO is equipped with the Mars Climate Sounder, which will continually measure the structure of the
Martian atmosphere, and the Mars Color Imager, which will provide daily global coverage of the weather. MRO’s
high-resolution imagers will track evidence of the history and distribution of water on Mars and identify potential
future sites for exploration.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in understanding why the terrestrial planets are
6SSE9 5SSE9 4SSE14 3S5
so different from one another. Progress toward achieving outcomes will be
Yellow Yellow Green Green
validated by external expert review.

PART 2 • DETAILED PERFORMANCE DATA 107


FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003
Successfully demonstrate progress in identifying the habitable zones in the solar
6SSE12 5SSE12 4SSE17 3S6
system. Progress toward achieving outcomes will be validated by external expert
Green Green Green Green
review.
Successfully demonstrate progress in identifying the sources of simple chemicals
6SSE13 5SSE13 4SSE18 3S6
that contribute to prebiotic evolution and the emergence of life. Progress toward
Green Green Green Green
achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in studying Earth’s geologic and biologic records
6SSE14 5SSE14 4SSE19 3S6
to determine the historical relationship between Earth and its biosphere. Progress
Green Green Green Green
toward achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in characterizing the present climate of Mars
6SSE15 5MEP7 4MEP9
and determining how it has evolved over time. Progress toward achieving None
Green Green Green
outcomes will be validated by external expert review.
Successfully demonstrate progress in understanding the history and behavior of
6SSE16 5MEP8 4MEP10
water and other volatiles on Mars. Progress toward achieving outcomes will be None
Green Blue Blue
validated by external expert review.
Successfully demonstrate progress in understanding the chemistry, mineralogy,
6SSE17 5MEP9 4MEP11
and chronology of Martian materials. Progress toward achieving outcomes will be None
Green Green Blue
validated by external expert review.
Successfully demonstrate progress in determining the characteristics and
6SSE18 5MEP10 4MEP12
dynamics of the interior of Mars. Progress toward achieving outcomes will None
Green Green Green
be validated by external expert review.
Successfully demonstrate progress in understanding the character and extent of
6SSE19 5MEP11 4MEP13
prebiotic chemistry on Mars. Progress toward achieving outcomes will be validated None
Yellow Yellow Green
by external expert review.
6SSE25 Complete Mars Science Laboratory Preliminary Design Review (PDR). 5MEP4
None None
Green Yellow

Performance Shortfalls
6SSE9: External reviewers deemed all of the evidence presented for this APG as positive. However, since the
evidence was based on preliminary results, the external reviewers rated the progress on this goal as less robust
than the progress seen in other areas of planetary science.

6SSE19: The lack of direct measurements has limited NASA’s progress in this area. The next two Mars mis-
sions, Phoenix and the Mars Science Laboratory, have the technology to measure directly organic compounds and
potentially elucidate the character and extent of pre-biotic chemistry.

OUTCOME 3C.3: PROGRESS IN IDENTIFYING AND INVESTIGATING PAST OR PRESENT HABITABLE ENVIRONMENTS ON MARS
AND OTHER WORLDS, AND DETERMINING IF THERE IS OR EVER HAS BEEN LIFE ELSEWHERE IN THE SOLAR SYSTEM.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

After several months of aerobraking, during which a spacecraft uses friction from a planet’s atmosphere to adjust
its orbit, MRO achieved its science orbit in September 2006 and prepared to begin main science investigations in
November. MRO’s instruments will search for chemical and biological indications that the Red Planet had once—or
still does—support life.

Data from Spirit and Opportunity show that specific epochs of Martian history were wet, strongly acidic, and
oxidizing—an environment not conducive to the development of life on Mars. However, the recent discovery of
liquid water on Enceladus suggests that habitable environments may exist elsewhere in the solar system. Further
exploration is necessary to identify and characterize these new environments.

108 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in searching for chemical and biological
6SSE20 5MEP12 4MEP14 3S6
signatures of past and present life on Mars. Progress toward achieving
Yellow Green Green Green
outcomes will be validated by external expert review.

Performance Shortfalls
6SSE20: The current missions at Mars, though providing data, do not possess technology to address this APG.
The next two Mars missions, Phoenix and the Mars Science Laboratory, have the technology to measure organic
compounds and mineralogy.

OUTCOME 3C.4: PROGRESS IN EXPLORING THE SPACE ENVIRONMENT TO DISCOVER POTENTIAL HAZARDS TO HUMANS
AND TO SEARCH FOR RESOURCES THAT WOULD ENABLE HUMAN PRESENCE.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

NASA catalogues and researches NEOs to track objects that could pose an impact hazard to Earth, to study these
building blocks of the solar system’s formation, and to discover their potential as raw materials for future space explo-
ration. In FY 2006, asteroid search teams funded by NASA’s Near Earth Object Program discovered 37 near-Earth
asteroids larger than one kilometer. Scientists also found 642 smaller objects bringing the total number of known
near-Earth objects (NEOs) to 4,201 for all sizes. NASA’s Jet Propulsion Laboratory, which computes the orbits
of NEOs, determined that none appear to pose a threat to Earth in the next century; however, the Jet Propulsion
Laboratory is monitoring 802 NEOs, of which 134 are larger than one kilometer in diameter, that are in orbits that
could become a hazard in the more distant future.

In 2006, NASA commissioned a study by external experts to estimate the total number of NEOs based on the
distribution of objects found to date. The study team estimated the population of NEOs larger than one kilome-
ter is indeed about 1,100 (plus or minus 75). However, the team found that mean reflectivity (the amount of light
reflected off the surface of the asteroid as measured from ground-based telescopes) for these objects is 20-percent
brighter than previously thought. This implies that previously discovered NEOs are all slightly smaller than originally
estimated. As a result, scientists have adjusted the number of identified NEOs larger than one kilometer to 689—or
63 percent of the estimated 1,100 large NEOs.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in determining the inventory and dynamics of
6SSE5 5SSE5 4SSE10
bodies that may pose an impact hazard to Earth. Progress toward achieving None
Green Green Green
outcomes will be validated by external expert review.
Successfully demonstrate progress in determining the physical characteristics of
6SSE6 5SSE6 4SSE11 3S8
comets and asteroids relevant to any threat they may pose to Earth. Progress
Green Blue Green Green
toward achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in identifying and understanding the hazards
6SSE21 5MEP13 4MEP15 3S8
that the Martian environment will present to human explorers. Progress toward
Green Green Blue Green
achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in inventorying and characterizing Martian
6SSE22 5MEP14 4MEP16 3S8
resources of potential benefit to human exploration on Mars. Progress toward
Green Yellow Blue Green
achieving outcomes will be validated by external expert review.
6SSE23 Complete successful Martian orbit insertion for Mars Reconnaissance Orbiter 5MEP2
None None
Green (MRO). Green

PART 2 • DETAILED PERFORMANCE DATA 109


Sub-goal 3D Discover the origin, structure, evolution, and destiny of the
universe, and search for Earth-like planets.
NASA uses space- and ground-based telescopes, computer models, and theoretical studies to explore and
understand phenomena like black holes, extra-solar planets, stars and galaxies. This research may reveal answers
to some of humankind’s eternal questions: How did the universe begin? Will the universe have an end? Are
humans alone in the universe?

In FY 2006, NASA missions explored how the universe began, probed the nature of gravity, searched for planets
beyond the Sun’s solar system, and observed the effects of event horizons around black holes, the theoretical
“point of no return” where nothing, not even light, can escape the black hole’s immense gravitational pull. The
Agency also made progress in the quest to identify Earth-like extra-solar planets. Recent observations indicate
that some types of stars have flattened debris disks and possibly planets orbiting them, increasing the likelihood of
discovering an Earth-like planet in the future.

Risks to Achieving Strategic Sub-goal 3D


NASA’s operating missions that are exploring the universe and searching for Earth-like planets are going well; how-
ever, schedule delays, cost growth, and technical difficulties have delayed development and deployment of some
instruments and projects. NASA’s next generation of observatories and planet-finder missions are more complex
and challenging than any mission to date. Any delays in these projects, or in the Kepler planet-finding mission, will
impact the Agency’s ability to achieve the Outcomes under Sub-goal 3D.

Resources, Facilities, and Major Assets


The biggest assets serving Sub-goal 3D are NASA’s armada of operational spacecraft, including the three space
telescopes comprising the Great Observatories: the Spitzer Space Telescope, the Hubble Space Telescope, and
the Chandra X-ray Observatory. NASA also is developing next-generation astrophysics missions, including JWST,
the Space Interferometer Mission (SIM), the Gamma-ray Large Space Telescope (GLAST), the Kepler mission, and
the Wide Field Infrared Survey Explorer (WISE).

NASA also supports the Keck Interferometer, a ground-based telescope located atop the dormant volcano Mauna
Kea in Hawaii. The Keck Interferometer combines the light from the twin Keck 10 meter diameter telescopes to
search for planets in other solar systems.

The cost of performance for Sub-goal 3D in FY 2006 was $1,910.95 million.

Outcome Ratings APG Ratings


10%
25%
2
1
19% 4

3 15

75% 71%

Under Sub-goal 3D, NASA is on track to Under Sub-goal 3D, NASA achieved 15 of 21
achieve 1 of 4 Outcomes. APGs.

110 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

NASA Scientist Shares Nobel Prize in Physics


John Mather, scientist at the Goddard Space Flight Center, and George Smoot,
professor at the University of California, won the 2006 Nobel Prize in Physics for
their collaborative work on understanding the Big Bang using data from NASA’s
Cosmic Background Explorer (COBE). COBE searched for cosmic microwave
background radiation (leftover energy from the Big Bang) and paved the way for
current microwave mapping techniques. The data provides evidence supporting
the Big Bang theory by discovering variations in radiation and temperatures associ-
ated with the beginning of the universe.
Left: John Mather shows some of the earliest data from the NASA Cosmic Background Ex-
plorer (COBE) spacecraft during a press conference held at NASA Headquarters. (NASA)

OUTCOME 3D.1: PROGRESS IN UNDERSTANDING THE ORIGIN AND DESTINY OF THE UNIVERSE, PHENOMENA NEAR BLACK
HOLES, AND THE NATURE OF GRAVITY.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

In FY 2006, NASA scientists analyzed more than 100


supernovae, many discovered by the Hubble Space
Telescope. Supernovae surveys enable NASA to identify a
common type of stellar explosion that provides a spatial ref-
erence throughout the galaxy. They also provide a basis for
studying the origins of dark energy, a mysterious force that
appears to make up about 74 percent of the universe and
may be responsible for the present-day acceleration of the
expansion of the universe.

NASA’s Wilkinson Microwave Anisotropy Probe (WMAP)


has been instrumental in increasing scientists’ understand-
ing of the universe and its origin. In FY 2006, NASA used During FY 2006, data from the Chandra X-ray Observa-
the data from WMAP to build the most detailed temperature tory showed for the first time how powerful magnetic
map of the universe ever and the first full-sky map showing fields are critical to the radiation emitted by black holes.
the “polarization” direction of the oldest light in the universe. The black hole’s rotation twists magnetic fields, shown
The WMAP data will help researchers pinpoint when the first here as black lines in this simplified image. These fields
stars formed and give scientists new insight into the events accelerate the charged gas falling into the black hole,
generating radiation that is seen as bright flashes by
that transpired in the first trillionth of a second of the uni- Chandra. (NASA/CXC/M.Weiss)
verse.

At the start of this fiscal year, NASA completed the Gravity Probe–B mission designed to test Einstein’s theory of
general relativity. While the nearly year-long mission is over, NASA scientists have just started analyzing the data.

In FY 2006, scientists at the Massachusetts Institute of Technology and Harvard University used data from NASA’s
Rossi X-ray Timing Explorer (RXTE) satellite to confirm the presence of theoretical borders around black holes
called event horizons. RXTE also was instrumental in identifying a medium-sized black hole in the M82 galaxy
cluster. This data is the first confirmation of the existence of a medium-sized black hole—one that is larger than the
common stellar mass black holes and smaller than the super massive black holes that reside at the core of most
galaxies.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in searching for gravitational waves from the
6UNIV8 5SEU4 4SEU9
earliest moments of the Big Bang. Progress toward achieving outcomes will be None
Green Green Green
validated by external expert review.

PART 2 • DETAILED PERFORMANCE DATA 111


FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003
Successfully demonstrate progress in determining the size, shape, and matter–
6UNIV9 5SEU5 4SEU10 3S1
energy content of the universe. Progress toward achieving outcomes will be vali-
Green Blue Green Blue
dated by external expert review.
Successfully demonstrate progress in measuring the cosmic evolution of dark
6UNIV10 5SEU6 4SEU11
energy. Progress toward achieving outcomes will be validated by external expert None
Green Green Blue
review.
Successfully demonstrate progress in determining how black holes are formed,
6UNIV11 5SEU7 4SEU12
where they are, and how they evolve. Progress toward achieving outcomes will be None
Green Green Green
validated by external expert review.
Successfully demonstrate progress in testing Einstein’s theory of gravity and map-
6UNIV12 5SEU8 4SEU13 3S2
ping space–time near event horizons of black holes. Progress toward achieving
Green Yellow Green Green
outcomes will be validated by external expert review.
Successfully demonstrate progress in observing stars and other material plunging
6UNIV13 5SEU9 4SEU14
into black holes. Progress toward achieving outcomes will be validated by external None
Green Blue Green
expert review.
Successfully demonstrate progress in exploring the behavior of matter in extreme
6UNIV15 astrophysical environments, including disks, cosmic jets, and the sources of 5SEU11 4SEU16 3S2
Green gamma-ray bursts and cosmic rays. Progress toward achieving outcomes will be Blue Green Green
validated by external expert review.
6UNIV19 Complete Gamma-ray Large Area Space Telescope (GLAST) spacecraft Integration 5SEU1
None None
Yellow and Test (I&T). Yellow
6UNIV20 Complete James Webb Space Telescope (JWST) mission Preliminary Design
None None None
Red Review (PDR).

Performance Shortfalls
6UNIV19: NASA postponed the GLAST I&T and rescheduled the launch for early FY 2007.

6UNIV20: NASA revised the JWST schedule in response to growth in the cost estimate that NASA had identified
in FY 2005. The Agency moved the launch date to 2013 and the PDR to March 2008.

OUTCOME 3D.2: PROGRESS IN UNDERSTANDING HOW THE FIRST STARS AND GALAXIES FORMED, AND HOW THEY
CHANGED OVER TIME INTO THE OBJECTS RECOGNIZED IN THE PRESENT UNIVERSE.

FY 2006 FY 2005 FY 2004 FY 2003


Yellow None None None

This year, scientists using NASA’s Spitzer Space Telescope detected light that may be emanating from the earliest
stars formed in the universe. Current theory suggests that space, time, and matter began with a “Big Bang” 13.7
billion years ago. Two hundred million years after that, the first stars formed. Scientists pointed Spitzer’s infrared
array camera at the Draco constellation to capture a diffuse glow of infrared light, invisible to the naked eye. The
research team at the Goddard Space Flight Center believes that the glow is coming from a hypothesized class of
stars believed to be the first stars formed in the universe, or perhaps from hot gas falling into the first black holes.

Two of NASA’s Great Observatories, the Spitzer and the Hubble Space Telescope, provided data that is enabling
scientists to “weigh” the stars in several distant galaxies. One of these galaxies, among the most distant ever
seen, appears to be unusually massive and mature for its place in the young universe. This came as a surprise to
astronomers since the earliest galaxies in the universe are commonly thought to have been much smaller groups
of stars that gradually merged to build large galaxies like the Milky Way.

A team of astronomers also used Spitzer to discover and catalog nearly 300 clusters of galaxies. Almost one third
of the clusters are as far as 10 billion light-years away, dating back to when the universe was very young. Galaxy

112 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

clusters, especially young clusters, provide researchers with insight into how the first stars and massive galaxies
formed.

Galactic collisions are a driving force behind star formation and the redistribution of stellar material throughout the
universe. Spitzer recently observed an ongoing collision between the galaxy M82 and its neighbor M81. This colli-
sion produced a plume of hot dust stretching 20,000 light years from M82 into intergalactic space. If enough dust
is released, a new galaxy or stellar cluster could form from this cosmic crash.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in determining how, where, and when the
6UNIV14 chemical elements were made, and in tracing the flows of energy and magnetic 5SEU10 4SEU15
None
Green fields that exchange them between stars, dust, and gas. Progress toward Green Green
achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in discovering how the interplay of baryons,
6UNIV16 5SEU12 4SEU17 3S1
dark matter, and gravity shapes galaxies and systems of galaxies. Progress toward
Yellow Green Green Blue
achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in learning how the cosmic web of matter
6UNIV17 organized into the first stars and galaxies and how these evolved into the stars and 5ASO5 4ASO9 3S3
Green galaxies we see today. Progress toward achieving outcomes will be validated by Green Blue Green
external expert review.
6UNIV20 Complete James Webb Space Telescope (JWST) mission Preliminary Design
None None None
Red Review (PDR).

Performance Shortfalls
Outcome 3D.2: NASA made scientific progress toward the Outcome, but delays in the development and launch
of JWST will impact future results. NASA postponed the launch date to 2013.

6UNIV16: External reviewers determined that NASA made limited progress in discovering how the interplay of
baryons, dark matter, and gravity shapes galaxies and systems of galaxies.

6UNIV20: See Outcome 3D.1, above.

3D.3: PROGRESS IN UNDERSTANDING HOW INDIVIDUAL STARS FORM AND HOW THOSE PROCESSES ULTIMATELY AFFECT
THE FORMATION OF PLANETARY SYSTEMS.

FY 2006 FY 2005 FY 2004 FY 2003


Yellow None None None

Recent discoveries revealed that the physical pro-


cesses governing planet formation could occur
under harsher conditions than originally thought.
In FY 2006, researchers using NASA telescopes
spotted planets, or planet-forming materials,
around some unlikely places like brown dwarfs,
which do not have sufficient mass to become
true stars. Even dead stars may have a second
chance at planet formation. Data from the Spitzer In February 2006, NASA announced that the Spitzer Space
Telescope identified two huge “hypergiant” stars circled by mon-
Space Telescope showed a planetary ring around strous disks of what might be planet-forming dust (shown in this
a pulsar in the Cassiopeia constellation. In the star illustration compared to the Sun’s solar system). Before this
explosion that formed the pulsar, the original finding, scientists believed that such large stars were inhospitable
planets would have been destroyed; however, to planets. The Spitzer finding expands the range of stars that can
clumping in this disk could produce a new, albeit support dusty disks to include hypergiants. (NASA/JPL–Caltech/
R. Hurt)

PART 2 • DETAILED PERFORMANCE DATA 113


stark, set of planets. These discoveries indicate that the process of star collapse can produce planet-forming
disks.

NASA observations of the dusty material orbiting stars have revealed an abundance of carbon. Astronomers
using data from NASA’s Far Ultraviolet Spectroscopic Explorer (FUSE) observed large amounts of carbon gas in
a dusty disk surrounding a young star named Beta Pictoris. Scientists are unsure if this system will give birth to
worlds that are rich in graphite and methane or if the carbon is a common characteristic of young solar systems.
NASA’s Spitzer Space Telescope also observed carbon gas around a star in the Ophiuchus system, IRS 46. In
contrast to the FUSE data, the data from Spitzer’s infrared spectrometer identified carbon and nitrogen in the form
of complex organic chains. These same building blocks are present in the Sun’s solar system and were likely nec-
essary for the development of life on Earth.

Delays in the SOFIA and JWST Programs will slow progress toward this Outcome because the Agency needs these
two new observatories to continue studying star formation. In March 2006, NASA reviewed the status of SOFIA
to identify and analyze options and decided to continue the SOFIA Program pending a restructuring, including
joint management of the SOFIA airborne system (aircraft and telescope) development and flight-testing by NASA’s
Dryden Flight Research Center and the German Space Agency. The Agency plans to ferry the SOFIA airborne
system to Dryden in early 2007 to initiate the extensive flight tests. NASA currently estimates that the flight test will
conclude in 2010, after which the Agency will conduct an operational readiness review before beginning full science
observation missions.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in understanding how different galactic
6UNIV1 ecosystems of stars and gas formed and which ones might support the existence 5ASO6 4ASO10
None
Green of planets and life. Progress toward achieving outcomes will be validated by Green Green
external expert review.
Successfully demonstrate progress in learning how gas and dust become stars and
6UNIV2 5ASO7 4ASO11 3S3
planets. Progress toward achieving outcomes will be validated by external expert
Green Green Green Green
review.
Successfully demonstrate progress in tracing the chemical pathways by which
6UNIV6 5ASO11 4ASO15 2S6
simple molecules and dust evolve into the organic molecules important for life.
Green Green Green Green
Progress toward achieving outcomes will be validated by external expert review.
6UNIV18 Complete Stratospheric Observatory for Infrared Astronomy (SOFIA) Airworthiness 5ASO1
None None
Red Flight Testing. Red
6UNIV20 Complete James Webb Space Telescope (JWST) mission Preliminary Design
None None None
Red Review (PDR).

Performance Shortfalls
Outcome 3D.3: NASA made scientific progress on this Outcome, but future results will be impacted by delays in
the development and deployment of the next generation of flight instruments.

6UNIV18: NASA delayed the SOFIA Airworthiness Flight Test.

6UNIV20: See Outcome 3D.1, above.

OUTCOME 3D.4: PROGRESS IN CREATING A CENSUS OF EXTRA-SOLAR PLANETS AND MEASURING THEIR PROPERTIES.
FY 2006 FY 2005 FY 2004 FY 2003
Yellow None None None

FY 2006 proved eventful for NASA’s extra-solar planet hunt. Using NASA’s space observatories and ground-based
telescopes, an international team of astronomers found the smallest planet ever detected around a normal star
outside this solar system. The extra-solar planet is five times as massive as Earth and orbits a red dwarf, a relatively

114 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

When Black Holes Collide


Einstein’s theory of general relativity predicts that a collision between super-
massive black holes will not radiate light like a supernova. Instead, it will emit
gravity waves. These waves cause space-time to jiggle like a bowl of Jell-O (as
shown in the illustration, right) and, because they rarely interact with matter, can
penetrate the dust and gas that normally block scientists’ view of black holes
and other objects.
Scientists at the Goddard Space Flight Center have made a gigantic step to-
wards detecting these waves. The NASA Ames Research Center tested a
three-dimensional model, which simulates gravity waves during a collision be-
tween black holes of the same mass, using NASA’s Columbia supercomputer
and some of the most complicated astrophysical calculations ever performed.
Scientists will be able to compare these results with data collected by the Na-
tional Science Foundation’s ground-based Laser Interferometer Gravitational-
Wave Observatory (LIGO) and the proposed Laser Interferometer Space An-
tenna (LISA), a joint NASA–European Space Agency project, in order to confirm
Einstein’s theory. (Henze, NASA)

cool star, every 10 years. The distance between the planet, designated OGLE-2005-BLG-390Lb, and its host is
about three times greater than the distance between Earth and the Sun. The planet’s large orbit and its dim parent
star make its likely surface temperature a frigid minus 364 degrees Fahrenheit (minus 220 degrees Celsius).

Researchers using the Spitzer Space Telescope detected a “hot Jupiter,” a large gas giant planet that reflects con-
siderable infrared radiation. The planet orbits relatively close to its star (closer than Earth’s orbit around the Sun)
and has a scorching temperature of 1,551 degrees Fahrenheit—hot enough to stand out despite the close pres-
ence of its parent star.

In February 2006, an international team of amateur and professional astronomers, using off-the-shelf equipment
provided by NASA, confirmed that they had discovered a Jupiter-sized planet circling a Sun-like star 600 light-years
from Earth. NASA brought amateur astronomers into the Agency’s extra-solar planet hunt back in 2002 as a way
to expand the search team while engaging the public.

Funding pressures within the Agency’s Astrophysics Division and delays with the Kepler mission will impact future
planet-finding missions. Kepler, a NASA Discovery mission designed to look at a wide field of stars for transitioning
planets, has contractor and workforce issues with regard to the primary instrument. The launch readiness date for
Kepler slipped from June 2008 to November 2008, resulting in a subsequent delay for supported missions.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Successfully demonstrate progress in observing planetary systems around other
6UNIV3 5ASO8 4ASO12 3S4
stars and comparing their architectures and evolution with our own. Progress
Green Green Blue Blue
toward achieving outcomes will be validated by external expert review.
Successfully demonstrate progress in characterizing the giant planets orbiting other
6UNIV4 5ASO9 4ASO13 3S4
stars. Progress toward achieving outcomes will be validated by external expert
Green Blue Green Blue
review.
Successfully demonstrate progress in determining how common Earth-like planets
6UNIV5 5ASO10 4ASO14
are and whether any might be habitable. Progress toward achieving outcomes will None
Yellow Blue Green
be validated by external expert review.
Successfully demonstrate progress in developing the tools and techniques to 3S4
6UNIV7 search for life on planets beyond our solar system. Progress toward achieving 5ASO12 4ASO16 Blue
Green outcomes will be validated by external expert review. Green Blue 3S6
Green
6UNIV21 Begin Kepler spacecraft Integration and Test (I&T). 5ASO2
None None
Yellow Green

PART 2 • DETAILED PERFORMANCE DATA 115


Performance Shortfalls
Outcome 3D.4: NASA made scientific progress on this Outcome, but future results will be impacted by
delays in the development and deployment of the next generation of flight instruments.

6UNIV5: Continued delays of SIM and Kepler constitute slow progress toward achieving this APG.

6UNIV21: NASA delayed the Kepler spacecraft I&T.

116 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

Sub-goal 3E Advance knowledge in the fundamental disciplines of


aeronautics, and develop technologies for safer aircraft
and higher capacity airspace systems.
NASA is the Nation’s leading government organization for aeronautical research. This world-class capability is
built on a tradition of expertise in core disciplines like aerodynamics, acoustics, combustion, materials and struc-
tures, and dynamics and control. NASA’s Aeronautics Research Mission Directorate conducts research that will
enhance significantly aircraft performance, environmental compatibility, and safety, and that will also enhance the
capacity, flexibility, and safety of the future air transportation system.

In FY 2006, NASA substantially restructured the Aeronautics Research Mission Directorate to focus on cutting-
edge fundamental research and revolutionary capabilities that will benefit NASA, other government agencies, the
broad aeronautics community, and the Nation. As part of this restructuring, NASA created the following four new
programs:
• The Fundamental Aeronautics Program develops system-level, multi-disciplinary capabilities in critical core
areas of aeronautics technology for both civilian and military applications;
• The Aviation Safety Program develops principles, guidelines, concepts, tools, methods, and technologies to
improve aviation safety;
• The Airspace Systems Program develops technologies, concepts, and capabilities for operational manage-
ment of the National Airspace System and the aircraft that fly within it; and
• The Aeronautics Test Program stewards the Agency’s key aeronautics test facilities, some of which are
considered national assets.

Risks to Achieving Sub-goal 3E


NASA identifies highly challenging, cutting-edge aeronautics research goals which, by their nature, are inherently
high risk. Even if each milestone is not met fully, the information NASA gains advances knowledge of aeronau-
tics and helps the Agency make informed decisions to realign research to the appropriate areas. Redirection of
resources to meet other national priorities is another major risk to NASA’s programs and schedules. Should this
occur, the Aeronautics Research Mission Directorate will re-align program milestones and schedules as needed to
respond to such changes.

The Fundamental Aeronautics, Aviation Safety, and Airspace Systems Programs partner with other government
agencies, industry, and universities to meet program objectives. These partnerships provide many benefits, but
also introduce external dependencies that could influence schedules and research output. The programs will miti-
gate this risk through close coordination with these partners.

Resources, Major Facilities, and Assets


NASA maintains several national aeronautics research assets, including wind tunnels at the Ames, Glenn, and
Langley Research Centers. Facilities like the Icing Research Tunnel, the 8-foot High Temperature Tunnel, and the
Thermal/Acoustic Facility allow NASA and Agency partners to test aircraft under various conditions.

In addition to ground-based test and research facilities, NASA maintains a number of research aircraft, including
F-15 and F-18 jets used to test new systems, icing research aircraft like the twin-engine turboprop Twin Otter, sub-
sonic research aircraft like the twin turbo-fan Gulfstream III, and the C-17 transport aircraft. NASA houses most of
these aircraft at the Dryden Flight Research Center, the Agency’s flight research and test hub.

The estimated cost of performance for Sub-goal 3E was $1,050.00 million.

PART 2 • DETAILED PERFORMANCE DATA 117


Outcome Ratings APG Ratings

20%
40%
2

3 4
40%
100%

Under Sub-goal 3E, NASA is on track to Under Sub-goal 3E, NASA achieved 4 of 10
achieve all 3 Outcomes. APGs.

OUTCOME 3E.1: BY 2016, IDENTIFY AND DEVELOP TOOLS, METHODS, AND TECHNOLOGIES FOR IMPROVING OVERALL
AIRCRAFT SAFETY OF NEW AND LEGACY VEHICLES OPERATING IN THE NEXT GENERATION AIR TRANSPORTATION SYSTEM
(PROJECTED FOR THE YEAR 2025).
FY 2006 FY 2005 FY 2004 FY 2003
Green None None None

During FY 2006, the Aeronautics Research Mission Directorate


realigned the Aviation Safety Program into four project areas that
focus on the foundational technologies needed to address safety
issues of current and future air vehicles that will be operating in
the Next Generation Air Transportation System:
• The Aircraft Aging and Durability project supports research to
predict, detect, and/or mitigate damage or degradation of air-
craft materials and structures due to aging related hazards;
• The Integrated Intelligent Flight Deck project develops flight
deck technologies that mitigate operator-, automation-, A dynamically scaled Generic Transport Model,
and environment-induced hazards for future operational part of the AirSTAR testbed, is shown coming
concepts; in for a landing. NASA will use it for flight vali-
dation of high-risk upset flight maneuver and
• The Integrated Vehicle Health Management project develops damage conditions, along with validation of
technologies to detect and correct system/component deg- resilient control algorithms and advanced adap-
radation and malfunctions early enough to prevent or recover tive control systems. (NASA)
from an in-flight failure that could lead to an accident; and
• The Integrated Resilient Aircraft Control project develops capabilities to reduce (or eliminate) aircraft loss-of-
control accidents and ensure safe flight under off-nominal conditions.
During FY 2006, the Aviation Safety Program conducted computer modeling of crack growth in aging aircraft to
develop failure mitigation techniques and to help engineers design more damage-tolerant materials. In addition,
the program made improvements to the NASA Icing Research Tunnel facility to enable research on super-cooled
liquid droplets. In April 2006, the program completed a live demonstration of new data mining tools. The data min-
ing tools will be used to query information from a distributed archive of flight operational data held by participating
operators. The goal of this activity is to use operational flight data to detect technical flaws or unsafe conditions
early enough to avert accidents. The program also completed the Airborne Subscale Transport Aircraft Research
(AirSTAR) testbed and began demonstrating operational readiness in September. NASA will use the AirSTAR test
bed to flight test technologies that will require unusual attitude conditions that cannot be safely achieved by a full-
scale civil transport category aircraft.

118 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


In partnership with the FAA, the Commercial Aviation Safety Team (CAST), and the
6AT4
aviation community, provide an initial demonstration of a voluntary aviation safety None None None
Green
information sharing process.
Complete Aviation Safety Program restructuring activities in order to focus research
6AT14
efforts more precisely on the Nation’s aviation safety challenges for the Next None None None
Yellow
Generation Air Transportation System (2025) and beyond.
Utilizing a competitive peer-reviewed selection process, determine the research
portfolio and partnerships to enable advances in the Aviation Safety thrust areas
6AT15
(Integrated Intelligent Flight Deck Technologies, Integrated Vehicle Health None None None
Yellow
Management, Integrated Resilient Aircraft Controls, and Aircraft Aging and
Durability).

Performance Shortfalls
6AT14 and 6AT15: The Aviation Safety Program delayed approval of one of its four projects: the Integrated
Resilient Aircraft Control, which develops capabilities to reduce (or eliminate) aircraft loss-of-control accidents and
ensure safe flight under off-nominal conditions. Program management expects final approval of this project during
the first quarter of FY 2007.

OUTCOME 3E.2: BY 2016, DEVELOP AND DEMONSTRATE FUTURE CONCEPTS, CAPABILITIES, AND TECHNOLOGIES
THAT WILL ENABLE MAJOR INCREASES IN AIR TRAFFIC MANAGEMENT EFFECTIVENESS, FLEXIBILITY, AND EFFICIENCY, WHILE
MAINTAINING SAFETY, TO MEET CAPACITY AND MOBILITY REQUIREMENTS OF THE NEXT GENERATION AIR TRANSPORTATION
SYSTEM.
FY 2006 FY 2005 FY 2004 FY 2003
Green None None None

NASA successfully completed the Small Aircraft Transportation


System (SATS) project in FY 2006. The project focused on im-
proving four operating capabilities: higher-volume operations
at airports without traffic-control towers or radar; lower landing
minimums at minimally equipped airfields; increased single pilot
performance; and en-route procedures for integrated fleet op-
erations. SATS conducted final assessments and evaluations,
and published the project’s successes in the Air Traffic Control
Association’s Journal of Air Traffic Control.

The Virtual Airspace Modeling and Simulation (VAMS) project


successfully developed its system-wide operational concept,
which provides a detailed description of a future capacity-
enhancing concept for the National Airspace System and an Thousands of aircraft cross the United States in
assessment of its potential capacity benefits. The assessment this FACET snapshot of air traffic taken on July
10, 2006, at 2:45 p.m. EST. Originally developed
was performed using the VAMS-developed Airspace Concepts by the Ames Research Center as a research tool
Evaluation System (ACES) assessment tool that models gate-to- to explore traffic management concepts, FACET
gate operations of the National Airspace System. Using ACES, has transitioned to a commercially licensed traffic
VAMS demonstrated that the system-wide concept could management tool. NASA continues to use the tool
accommodate the targeted doubling of capacity (relative to in the Agency’s aeronautics research. (NASA)
1997 throughput).

The Future Air Traffic Management Concepts Evaluation (FACET) Tool won NASA’s Software of the Year Award
for 2006. FACET is a flexible software tool that models the National Airspace System. Its powerful simulation

PART 2 • DETAILED PERFORMANCE DATA 119


capabilities can rapidly generate thousands of aircraft trajectories to enable efficient planning of traffic flows at the
national level.

NASA restructured the Airspace Systems Program to align research efforts with the Joint Planning and
Development Office’s Next Generation Air Transportation System (NGATS) goals for 2025. (The Joint Planning and
Development Office is a collaboration among government agencies, industry, and the public sector to plan and
enable NGATS.) NASA identified major research thrust areas: the NGATS Air Traffic Management Airspace project
and the NGATS Air Traffic Management Airportal project. The program focuses on finding technological solutions
for automated air traffic management as a step toward creating a safe, efficient, high-capacity, and integrated
NGATS.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6AT7 Successfully complete the SATS integrated technology demonstration and final
None None None
Green assessment.
Complete Airspace Systems Program restructuring activities in order to align
6AT16
research efforts to address the Joint Planning and Development Office’s Next None None None
Yellow
Generation Air Transportation System (NGATS) capability requirements for 2025.
Utilizing a competitive peer-reviewed selection process, determine the research
6AT17 portfolio and partnerships to enable advances in the Airspace Systems thrust areas
None None None
Yellow (Next Generation Air Transportation Systems and Super Density Surface
Management).

Performance Shortfalls
6AT16 and 6AT17: The Airspace Systems Program delayed approval of a portion of its project portfolio (the
NGATS Air Traffic Management Airportal project) that will develop capabilities to increase throughput in terminal
and airport domains enabling NGATS. Program management expects final approval of this project, including its
peer-reviewed research portfolio and partnerships, during the first quarter of FY 2007.

OUTCOME 3E.3: BY 2016, DEVELOP MULTIDISCIPLINARY DESIGN, ANALYSIS, AND OPTIMIZATION CAPABILITIES FOR USE
IN TRADE STUDIES OF NEW TECHNOLOGIES, ENABLING BETTER QUANTIFICATION OF VEHICLE PERFORMANCE IN ALL FLIGHT
REGIMES AND WITHIN A VARIETY OF TRANSPORTATION SYSTEM ARCHITECTURES.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

The Fundamental Aeronautics Program is focusing on long-term investments in cutting-edge fundamental research
in traditional aeronautics disciplines. The key objectives guiding this new focus are to re-establish NASA’s com-
mitment to mastering the fundamental technology of subsonic (rotary and fixed wing), supersonic, and hypersonic
flight, and to focus NASA’s unique research capabilities in areas that have the potential to expand the capabilities of
future aircraft for the greatest national benefit (e.g., higher performance, lower noise, and reduced emissions). All
four projects within the program had significant accomplishments, including those listed below.

The Rotary Wing project conducted a helicopter flight test to provide data for rotorcraft acoustic analysis validation
and to develop low-noise flight profiles. NASA conducted the test with project partners: the U.S. Army, the Center
for Rotorcraft Innovation, Bell Helicopter, and the University of Maryland. The project team will use the results of
these tests to validate advanced prediction models that can be used for future design exercises.

NASA’s Fixed Wing project, in collaboration with Pratt & Whitney, completed the design of geared turbofan compo-
nents. Based on studies, the project partners selected a design—a low fan-pressure-ratio geared turbofan with a
lightweight Variable Area Fan Nozzle—that reduces both noise and emissions relative to current engines.

The Supersonics project completed an initial study of the impact of atmospheric turbulence on very-low-noise
sonic boom waveforms. NASA used F-18 aircraft, flying a specially designed flight profile, to generate the booms,

120 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

which occur when aircraft fly faster than the speed of sound. NASA recorded indoor and outdoor waveform
shapes, noise levels, and building vibration data for use in model validation studies. This research will help project
engineers develop ways to reduce the sonic-boom noise produced by supersonic aircraft.

The Hypersonics project completed the Mach 5 testing of the Ground Demonstration Engine–2 in the NASA
8-Foot High Temperature Tunnel. NASA teamed with the Air Force Research Laboratory and Pratt & Whitney
Rocketdyne to complete the tests. The NASA tests marked the first time a closed-loop, hydrocarbon-fueled, fuel-
cooled scramjet was tested at hypersonic conditions. Fuel cooling of the scramjet is essential for the hardware to
survive the temperatures found in hypersonics flight.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Identify and document engine configuration and noise reduction technologies
6AT8 5AT4
needed to enable 10 dB reduction in aircraft system noise. (APG revised based None None
White Green
on FY06 Appropriation.)
6AT11 Complete trade study of unconventional propulsion concepts for a zero-emissions
None None None
White vehicle.
Complete Fundamental Aeronautics Program restructuring activities in order to
6AT18
focus efforts on fundamental research to develop physics-based multidisciplinary None None None
Green
design, analysis, and optimization tools.
Utilizing a competitive peer-reviewed selection process, determine the research
6AT19
portfolio and partnerships to enable advances in the Fundamental Aeronautics None None None
Green
thrust areas (fixed wing, rotary wing, supersonics, and hypersonics).

Performance Shortfalls
6AT8 and 6AT11: NASA canceled these APGs because they no longer aligned with the Agency’s aeronautics
research goals.

PART 2 • DETAILED PERFORMANCE DATA 121


Sub-goal 3F Understand the effects of the space environment on human
performance, and test new technologies and counter-
measures for long-duration human space exploration.
Human exploration is the cornerstone of the Vision for Space
Exploration. The space environment holds many challenges
for the human body, including exposure to radiation, atrophy of
unused muscles, and calcium loss in weight-bearing bones that
reduces bone density and increases fracture risks. NASA is
researching and developing the countermeasures necessary to
assure the health of today’s astronauts and the next generation of
human explorers.

NASA is preparing not only for extraordinary hazards associated


with space travel, but also for the everyday problems that human
explorers may face on extended duration missions. Researchers
are looking at seemingly simple issues like crew comfort, food
preparation, and life-support while also preparing for potentially NASA is developing Advanced Environmental
hazardous major events like spacecraft fires and solar flares. In Monitoring and Control systems for flight on the
FY 2006, NASA prepared for long-duration human space explo- ISS (and ultimately Orion) to detect harmful con-
taminants in the atmosphere and alert the crew.
ration missions by testing spacesuits for comfort and mobility,
In this photo, project scientist Jake Maule uses
conducting bed rest studies, developing experiments for the In- the Lab-on-a-Chip Application Development
ternational Space Station (ISS), and continuing other life support (LOCAD)–Portable Test System, a hand-held
projects. device for rapid detection of potentially harm-
ful biological and chemical substances, aboard
Assuring the health of human space explorers begins on the NASA’s KC-135 microgravity research aircraft.
ground, so this Sub-goal also covers the Agency’s medical (NASA)
certification program that confirms all astronauts are fit to fly and
perform their duties.

Risks to Achieving Sub-goal 3F


NASA’s research and development efforts for human exploration rely on national and international partnerships that
enable NASA to expand the Agency’s pool of research data and reduce redundant efforts. NASA has established
relationships with the Agency’s partners through both the International Space Life Sciences Working Group and
ISS partnerships. NASA also relies on access to the Russian Institute of Biomedical Problems, the MEDES Institute
for Space Medicine and Physiology bed rest and centrifuge facility in Toulouse, France, and the German Space
Agency’s bed rest and centrifuge facility in Cologne, Germany. NASA’s Human Research Program (the program
responsible for developing human spaceflight countermeasures) depends on maintaining good relations with the
Department of Energy to assure availability of critical radiation research facilities at the Brookhaven NASA Space
Research Laboratory. Like any cooperative effort, these partnerships create the potential for delays, which could
affect the development of exploration technologies.

Additional internal risks include cross-program management between the Agency’s Human Research Program and
related work in Constellation Systems. Changes in the ISS/Shuttle manifest schedule also could impact progress
toward this Sub-goal.

Resources, Facilities, and Major Assets


NASA uses numerous ground-based research facilities to support human exploration efforts like the 2.2- and
5-second Drop Towers at the Glenn Research Center, which support short-term microgravity studies without
an ISS mission or parabolic flights. These facilities enable space-related research at reduced risk and cost in
comparison with flight missions; however, they cannot substitute for the necessary experience of living and working
in space.

122 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

NASA Tests Space Capabilities at Undersea Lab


The NASA Extreme Environment Mission Operations (NEEMO) uses an
undersea laboratory to test technologies and capabilities for future human
space exploration. During FY 2006, NASA conducted three NEEMO mis-
sions at the Aquarius Underwater Laboratory, located off the coast of Key
Largo, Florida. The laboratory’s remote location and extreme environment
makes it a good analog for space exploration. During the missions, the
crew conducted “moon walks” to collect “lunar” samples and constructed a
Waterlab. They tested techniques for communication and navigation and used a
remote-operated vehicle, affectionately named Scuttle by the crew, to deter-
mine its usefulness in various situations such as night exploration. In addition,
the crew of NEEMO–9 assisted a doctor while he performed remote long-
distance surgery on a simulated wound, testing technologies that could be Crew members for the NEEMO–9 mission arrive at
used for future telemedicine on Earth or in space. their underwater home on April 3, 2006. The crew
stayed inside the Aquarius Underwater Laboratory
for 15 days. (NASA)

NASA’s largest facility—and asset—supporting the development of technologies for human exploration is the
International Space Station. The ISS allows NASA and the Agency’s international partners to develop and test
countermeasures, life-support technologies, and exploration capabilities over many months in the space environ-
ment. The ISS is currently the best analog for future human missions to the Moon and Mars.

The cost of performance for Sub-goal 3F in FY 2006 was $367.07 million.


Outcome Ratings APG Ratings
5%
5% 1
1

3 17

100% 89%

Under Sub-goal 3F, NASA is on track to Under Sub-goal 3F, NASA achieved 17 of 19
achieve all 3 Outcomes. APGs.

OUTCOME 3F.1: BY 2008, DEVELOP AND TEST CANDIDATE COUNTERMEASURES TO ENSURE THE HEALTH OF HUMANS
TRAVELING IN SPACE.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

With ever-increasing precision, NASA is developing countermeasures to assure the health of astronauts during
long-duration missions. NASA is preparing for future exploration missions by conducting studies on bone loss, cir-
culatory stress, drug interactions in space, behavioral health, microbial growth and virulence, and other areas. The
Foot–Ground Reaction Forces experiment, concluded in April 2006, will help scientists understand the mechanics
of bone mineral loss so they can create mechanical and pharmaceutical countermeasures. At the end of FY 2006,
NASA had collected data from 18 subjects for the renal stone countermeasure experiment, and researchers ex-
pect to complete the experiment in March 2007. The data provided by this experiment will help NASA mitigate the
occurrence of kidney stones while crewmembers are in space.

PART 2 • DETAILED PERFORMANCE DATA 123


In addition to the deteriorating effects of microgravity, space poses several other challenges to astronauts, including
the effects of space radiation on living organisms. In FY 2006, NASA scientists completed a study of high-energy,
heavy particle radiation to identify the best ways to protect human crews. The results of the study will be published
in FY 2007.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6SFS5 Achieve a 5 percent reduction in downtime.
None None None
Green
6SFS6 Certify medical fitness of all crewmembers before launch. 5SFS20 4SFS10
None
Green Green Green
6HSRT9 Complete renal stone countermeasure development.
None None None
Yellow
6HSRT10 Start testing of bone and cardiovascular countermeasures in space.
None None None
Green
6HSRT11 Deliver report from National Council on Radiation Protection and Measurements on
None None None
Green lunar radiation protection requirements.
6HSRT20 Complete the physics database for shielding in the region above 2 GeV per
None None None
Green nucleon.

Performance Shortfalls
6HSRT9: Although researchers made progress toward achieving this APG, the renal stone experiment will not be
complete until data is collected on one more subject. NASA expects to complete the study in FY 2007.

OUTCOME 3F.2: BY 2010, IDENTIFY AND TEST TECHNOLOGIES TO REDUCE TOTAL MISSION RESOURCE REQUIREMENTS
FOR LIFE SUPPORT SYSTEMS.

FY 2006 FY 2005 FY 2004 FY 2003


Green Green None None

Current life support systems for space travel are large, heavy, and require considerable amounts of power that
significantly increase the costs and resources needed for crewed missions. NASA is pursuing technologies to
reduce the weight and resource demands of these systems. In FY 2006, NASA continued testing the Vapor Phase
Catalytic Ammonia Removal Unit. This system will help convert human liquid wastes into drinkable water. NASA is
conducting final verification of the ISS Fluids Integrated Rack and the Constrained Vapor Bubble Heat Exchanger
to prepare them for launch to the ISS. NASA also is working on technologies for increasing carbon dioxide removal
efficiency and converting recycled air into oxygen and water.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6HSRT13 Start validation testing of a spacecraft water purification system called the Vapor
None None None
Green Phase Catalytic Ammonia Removal Unit.
6HSRT14 Define requirements for the Condensing Heat Exchanger Flight experiment focused
None None None
White on improving space condenser reliability.
6HSRT15 Complete and deliver for launch the ISS Fluids Integrated Rack.
None None None
Green
6HSRT16 Complete and deliver for launch experiments to explore new lightweight heat
None None None
Green rejection technologies.
6HSRT17 Start technology testing and assessment of the Solid Waste Compaction
None None None
Green processor.
6HSRT18 Conduct next-generation lithium hydroxide (LiOH) packaging tests to improve
None None None
Green carbon dioxide removal efficiency.

124 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6HSRT19 Conduct ground testing of the Sabatier unit to demonstrate reliability in recovering
None None None
Green oxygen and water from carbon dioxide.

Performance Shortfalls
6HSRT14: NASA canceled the Condensing Heat Exchanger Flight experiment.

OUTCOME 3F.3: BY 2010, DEVELOP RELIABLE SPACECRAFT TECHNOLOGIES FOR ADVANCED ENVIRONMENTAL
MONITORING AND CONTROL AND FIRE SAFETY.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

Fires, air quality, and environmental monitoring are significant challenges in the high oxygen environment and close
quarters of a spacecraft. To mitigate these risks, NASA is developing technologies to monitor cabin air quality and
water quality and to improve ways to detect and extinguish fires. Technologies under development in FY 2006
included the Vehicle Cabin Air Monitoring System, a hand-held water monitoring system, and advanced smoke
detection tools using data from the Dust and Aerosol Measurement Feasibility Tests experiment flown on the ISS.
In addition, the Droplet Flame Extinguishment Experiment and the ISS Combustion Integrated Rack are undergoing
final verification for flight and installation on the ISS. This equipment will enable further combustion and fire sup-
pression experiments in microgravity.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6HSRT3 Demonstrate the ability of the advanced spacecraft air monitoring system to detect
None None None
Green 90 percent of the high-priority air contaminants in ground testing.
6HSRT4 Demonstrate the ability of the hand-held water monitoring system to detect space-
None None None
Green craft water biocides and high-priority metal contaminants in ground testing.
Support development of a new generation of reliable spacecraft smoke detectors
6HSRT5 by finishing measurements of ISS background particulates using the DAFT experi-
None None None
Green ment and delivering for launch the Smoke and Aerosol Measurement Experiment
(SAME).
6HSRT6 Complete and deliver for launch the ISS Combustion Integrated Rack (CIR).
None None None
Green
6HSRT7 Complete and deliver for launch the Droplet Flame Extinguishment in Microgravity
None None None
Green Experiment aimed at quantifying fire suppressant effectiveness.
6HSRT8 Develop a revised space materials flammability characterization test method and
None None None
Green update NASA-STD-6001 accordingly.

PART 2 • DETAILED PERFORMANCE DATA 125


Strategic Goal 4 Bring a new Crew Exploration Vehicle into service as soon
as possible after Shuttle retirement.
With the Space Shuttle’s retirement scheduled for 2010, NASA
must develop a next-generation space transportation system to
deliver crew and cargo to the International Space Station (ISS).
Unlike the Shuttle, the new Constellation System vehicles will
travel beyond low Earth orbit to return humans to the Moon and
eventually carry them to Mars and beyond.

The first vehicles in the Constellation System will be the Orion


Crew Exploration Vehicle (CEV) and the Ares I Crew Launch
Vehicle (CLV). The Orion CEV will use reliable elements from the
Apollo and Shuttle systems, but it also will incorporate the latest
in shielding, computer technologies, and support systems. The
Ares I CLV also will leverage existing technologies and systems
to provide an affordable, reliable, and safe method for launching
humans and cargo into orbit. To launch the new vehicles beyond
In this artist’s concept, the Orion Crew
low Earth orbit, NASA is developing the Ares V heavy lift launcher. Exploration Vehicle approaches the International
It will have capabilities similar to the Saturn V rocket used for the Space Station. (NASA)
Apollo missions.

NASA’s goal is to have the Orion CEV and Ares I CLV operational as close to 2010 as possible, but no later than
2014.

Risks to Achieving Strategic Goal 4


Potential risks to the successful completion of the Orion CEV/Ares I CLV space transportation system include
workforce and asset transitioning and given that NASA has not developed a new lunar spacecraft in over 30 years,
unexpected technical hurdles. In FY 2007, NASA will begin transitioning workforce and assets from the Space
Shuttle Program to the Constellation Systems Program. To mitigate the risks associated with this major transi-
tion, the Agency will use a number of working groups and control boards, including the Transition Control Board,
the Joint Integration Control Board, and the Headquarters Transition Working Group, to coordinate actions across
programs.

Assessments
In FY 2006, the Office of Management and Budget (OMB) assessed the Constellation Systems Program with
OMB’s Program Assessment Rating Tool (PART). OMB assessed the overall program as “Adequate,” with the fol-
lowing scores by program section:

Kennedy Space Center Prepares for Constellation Systems


The Kennedy Space Center will support NASA’s new Constellation Systems by using
existing assets that support the Space Shuttle Program. NASA initiated an effort to sup-
port construction, alteration, renovation, and repair of buildings and structures that will
form the Constellation Systems processing and launch infrastructure. Early concepts
include using assets like the Shuttle Crawler Transporter to meet Ares I/Orion vehicle
ground support requirements. The Kennedy Space Center and the State of Florida
entered into a Space Act Agreement to conduct studies on assembly and checkout
facilities and the preparation of a high bay for these activities.
Right: An early concept drawing shows the CLV being transported to the Pad on the modified Shut-
tle Crawler Transporter following stacking operations in the Vehicle Assembly Building. (NASA)

126 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

• Program Purpose and Design—100%


• Strategic Planning—78%
• Program Management—75%
• Program Results/Accountability—40%
OMB cited a major deficiency in the Program Management area for the Constellation Systems Program related to
Agency-wide problems with integrating NASA’s new systems for financial and administrative management. The
lower scores in the Program Results/Accountability and Strategic Planning areas were due to the relative newness
of the program and the limited baselines for comparison and evaluation.

Resources, Facilities, and Major Assets


Some of the major facilities supporting Constellation Systems Program activities include the following:
• The Johnson Space Center is managing the CEV project. Johnson also manages astronaut training, so
NASA is constructing training mock-ups of the CEV crew module and other elements in Johnson’s Mock-up
Facility.
• The Stennis Space Center will test the J–2X engine that will power the upper stage of Ares I and the Earth-
departure stage of the Ares V cargo launch vehicle. During FY 2007, NASA will decommission the A-1 Test
Stand that has been used to test Shuttle engines since 1975 and convert it for testing the J–2X engine. In the
future, NASA will test the RS-68 rocket that will power the Ares V’s main stage at Stennis’s B-1 Test Stand.
• The Glenn Research Center will test the J–2X engine in its Cryogenic Propellant Tank Facility, which simulates
the extreme cold and vacuum of space.
• The Langley Research Center will characterize the aerodynamics of the Orion CEV in the Center’s wind tunnel
facilities.
• The Michoud Assembly Facility, which currently builds external tanks for the Shuttle, will assemble the Ares
upper stages.
• The Kennedy Space Center will manage launch operations. Over the next several years, NASA will transi-
tion Kennedy’s Shuttle facilities and build new facilities to serve the future needs of the Constellation Systems
Program.
The cost of performance for Strategic Goal 4 in FY 2006 was $1,622.16 million.

Outcome Ratings APG Ratings

33%
2

2 4

100% 67%

Under Strategic Goal 4, NASA is on track to Under Strategic Goal 4, NASA achieved 4 of 6
achieve both Outcomes. APGs.

PART 2 • DETAILED PERFORMANCE DATA 127


OUTCOME 4.1: NO LATER THAN 2014, AND AS EARLY AS 2010, TRANSPORT THREE CREWMEMBERS TO THE
INTERNATIONAL SPACE STATION AND RETURN THEM SAFELY TO EARTH, DEMONSTRATING AN OPERATIONAL CAPABILITY
TO SUPPORT HUMAN EXPLORATION MISSIONS.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None
This artist’s concept
NASA is making progress on the development of the Orion CEV drawing shows the
and Ares I CLV. During FY 2006, NASA awarded contracts to Alliant Ares V heavy lift car-
Techsystems and Pratt & Whitney Rocketdyne for Ares I first stage and go launch vehicle
(left) and the Ares I
upper stage engine development, respectively. NASA engineers con-
crew launch vehicle
ducted over 80 wind tunnel tests on a partial model of the Ares I vehicle (right). (NASA)
that included a portion of the upper stage, the spacecraft adapter, the
Orion CEV, and the launch abort system. Data collected during these
tests will help engineers modify the system’s aerodynamics to maximize
the vehicle’s flight capabilities. The Agency also completed preliminary
tests of an “augmented spark igniter” for Ares I. This vital component
acts as the rocket’s “spark plug,” igniting the liquid hydrogen and liquid
oxygen propellants needed to power the spacecraft.

On August 31, NASA named Lockheed Martin as the primary contractor to help the Agency design, develop, test,
and certify the Orion CEV.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Conduct the Earth Orbit Capability (Spiral 1) Systems Requirements Review to
6CS1 5TS1
define detailed interface requirements for the Crew Exploration Vehicle, the Crew None None
Green Green
Launch Vehicle, and supporting ground and in-space systems.
6CS2 Competitively award contract(s) for Phase A and Phase B design and flight
None None None
Green demonstration of the Crew Exploration Vehicle.
6CS3 Develop detailed Crew Launch Vehicle design and operational modifications to 5TS3
None None
Green support human rating and exploration mission architecture requirements. Green
Develop a plan for systems engineering and integration of the exploration System
6CS4
of Systems; clearly defining systems and organizational interfaces, management None None None
Green
processes, and implementation plans.

OUTCOME 4.2: NO LATER THAN 2014, AND AS EARLY AS 2010, DEVELOP AND DEPLOY A NEW SPACE SUIT TO
SUPPORT EXPLORATION, THAT WILL BE USED IN THE INITIAL OPERATING CAPABILITY OF THE CREW EXPLORATION VEHICLE.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

NASA is redefining the Extravehicular Activity Systems (i.e., spacesuits and other equipment) for the Constellation
Systems Program due to evolving budget priorities. During FY 2006, the Constellation Systems Program re-evalu-
ated the requirements driving spacesuit design and determined that instead of developing two spacesuits—one
for use in space and one for use on the lunar surface—the Constellation Systems Program will develop a single,
integrated spacesuit. The spacesuit design also will incorporate maximum design flexibility and modularity to allow
for the efficient integration of upgrades. This approach should reduce the development costs of this project.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6HSRT1 Complete the technology trade studies for both the in-space and surface EVA suits.
None None None
White

128 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6HSRT2 Complete the system requirements review for both the in-space and surface explo-
None None None
White ration EVA suits.

Performance Shortfalls
6HSRT1 and 6HSRT2: Due to changes in the Extravehicular Activity Systems architecture, NASA management
canceled these APGs. NASA will include appropriately revised APGs in the FY 2007 Performance Plan.

PART 2 • DETAILED PERFORMANCE DATA 129


Strategic Goal 5 Encourage the pursuit of appropriate partnerships with the
emerging commercial space sector.
The landscape of the space industry is changing. The recent award of
the Ansari X–Prize and other ongoing private space efforts has strength-
ened the potential for the commercial space sector to expand into new
markets. NASA is collaborating with established commercial launch
service providers while also encouraging development of the emerging
entrepreneurial launch sector through incentives like Space Act Agree-
ments and prize competitions. Through these partnerships, NASA will
gain access to a wider selection of competitively priced technology,
services, and capabilities.

Risks to Achieving Strategic Goal 5


NASA payloads are often one-of-a-kind, complex, and expensive,
so it is imperative that NASA take all reasonable measures to as-
sure successful launches. The greatest challenges associated with
Strategic Goal 5 are finding emerging companies that can demonstrate
the required launch capabilities and mitigating additional risk associ-
ated with using less experienced commercial launch providers. NASA’s
Commercial Orbital Transportation Services (COTS) project reflects
the Agency’s goal of acquiring launch services from emerging launch
In FY 2006, NASA signed Space Act
providers to free up government resources for projects like the Orion Agreements with SpaceX and Rocket-
Crew Exploration Vehicle. plane–Kistler to design vehicle options for
delivering cargo to the International Space
Resources, Facilities, and Major Assets Station. This picture shows artist rendi-
tions of SpaceX’s Dragon cargo and crew
NASA currently does not use any of the Agency’s major facilities to
elements (top) and Rocketplane Kistler’s
support activities contributing to Strategic Goal 5. However, NASA orbital vehicle. (NASA)
does make available to the Agency’s commercial partners many of the
Agency’s world-class facilities, like rocket propulsion test stands and
wind tunnels, so they can test developmental technologies. The major assets supporting Strategic Goal 5 are
NASA’s workforce managing the Commercial Crew and Cargo Program Office at Johnson Space Center and the
Agency’s many industry partners.

The cost of performance for Strategic Goal 5 in FY 2006 was $44.00 million.

Outcome Ratings APG Ratings

2 2

100% 100%

Under Strategic Goal 5, NASA is on track to Under Strategic Goal 5, NASA achieved both
achieve both Outcomes. APGs.

130 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

OUTCOME 5.1: DEVELOP AND DEMONSTRATE A MEANS FOR NASA TO PURCHASE LAUNCH SERVICES FROM EMERGING
LAUNCH PROVIDERS.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

During FY 2006, NASA established the Commercial Crew and Cargo Program Office at the Johnson Space
Center to manage NASA’s COTS project. NASA will pursue commercial partnerships with private industries through
COTS to develop and demonstrate the vehicles, systems, and operations needed to transport cargo and crew to
and from the International Space Station (ISS).

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Define and provide space transportation requirements for future human and robotic
6SFS4 5SFS19
exploration and development of space to all NASA and other government agency None None
Green Green
programs pursuing improvements in space transportation.

OUTCOME 5.2: BY 2010, DEMONSTRATE ONE OR MORE COMMERCIAL SPACE SERVICES FOR ISS CARGO AND/OR
CREW TRANSPORT.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

In FY 2006, NASA signed Space Act Agreements with SpaceX and Rocketplane–Kistler stating that the two com-
panies would develop reliable, cost-effective options for delivering cargo to the ISS as defined by NASA in the
COTS Service Requirements Document. As a first step, NASA and these new Agency partners agreed on sched-
uled milestones, including demonstrations of the vehicles as early as 2008 through 2010. NASA will continue to
work closely with these companies to develop their launch capabilities.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6ISS2 Downselect transportation service providers from FY 2005 ISS Cargo Acquisition 5ISS7
None None
Green RFP. Yellow

PART 2 • DETAILED PERFORMANCE DATA 131


Strategic Goal 6 Establish a lunar return program having the maximum
possible utility for later missions to Mars and other
destinations.
Missions to the Moon in the 21st century will be vastly different from the
Apollo missions. Future missions will carry more crewmembers, expand
the range of lunar landing sites, and increase the length of time astronauts
spend exploring the lunar surface. Future explorers also will experiment
with using lunar resources (e.g., possible water ice located deep within
lunar craters) to reduce the amount of supplies that must be brought from
Earth and to support an extended human presence on the Moon.

To achieve Strategic Goal 6, NASA will leverage partnerships with indus-


try and the international space community to acquire next-generation
technologies for life support, communications and navigation, radiation
shielding, power generation and storage, propulsion, and resource extrac-
tion and processing.

In FY 2006, NASA began laying the foundation for the lunar return program
by focusing Agency research on robotic reconnaissance explorers, surface
nuclear power systems, and advanced communications systems. These
technologies will support the lunar return program and will evolve and be
adapted to support future Mars missions. In November 2005, Johnson Space
Center’s Robonaut (foreground) per-
Risks to Achieving Strategic Goal 6 forms a mock weld while Ames Re-
search Center’s K10 robot assists two
NASA faces a myriad of technological challenges and risks in returning spacesuited crewmembers inspecting
humans to the Moon. Every system, from the Constellation Systems that a previously welded seam. This activity
will transport humans to the Moon to the surface nuclear power systems tested human–robot interactions and
that will power lunar outposts, will need to work seamlessly, reliably, and the two robots’ ability to work together
have back-up capabilities to assure the safety of lunar crews. Like all autonomously for assembly and main-
tenance, important capabilities for fu-
research and development work, these initiatives will confront technologi-
ture lunar exploration. (NASA)
cal challenges and unpredictable breakthroughs that could interfere with
project schedules and increase development costs. NASA will adjust
schedules and cost estimates as the projects progress.

Resources, Facilities, and Major Assets


NASA will test components of the Lunar Reconnaissance Orbiter (LRO) in the Goddard Space Flight Center’s
Thermal Vacuum Chamber, which simulates the harsh space environment. After development and extensive test-
ing, engineers at the Kennedy Space Center will prepare the LRO and the Lunar Crater Observation and Sensing
Satellite (LCROSS) for launch.

NASA is using several Agency laboratories and facilities to conduct research contributing to Outcome 6.2:
• The Ames Research Center’s Intelligent Systems Division develops software and engineering systems to
make rovers, robots, and autonomous vehicles more adaptable, robust, and capable. The intelligent systems
designed at Ames will play an integral role in robotic precursor missions and in creating robotic assistants for
human explorers.
• NASA will test large systems at the Johnson Space Center’s two Large Thermal Vacuum Chambers, which can
simulate the lunar pole environment. Johnson’s Automation, Robotics, and Simulation Division will integrate
robotic systems into test technologies for analysis, testing, and verification at Johnson’s various laboratories.

132 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

• The Glenn Research Center’s Aerospace Flight Battery System Program will develop improved batteries to sup-
port in-space and surface operations.
NASA is conducting most of the work for the Prometheus Power and Propulsion project contributing to Outcome
6.3 at the Glenn Research Center and Marshall Space Flight Center. NASA will use Glenn’s Solar Thermal Vacuum
Facility–Tank 6, which can simulate a range of space environments, to develop the Technology Demonstration Unit,
used to study and resolve system integration issues. NASA then will use Marshall’s Early Flight Fission Test Facil-
ity to test the reactor simulator portion of the Technology Demonstration Unit. The Early Flight Fission Test Facility
allows engineers to test aspects of nuclear reactors under non-nuclear conditions.

NASA’s extensive communications networks are anchored by four major elements: the Tracking and Data Relay
Satellite (TDRS) system, a constellation of satellites that provide in-flight communications with spacecraft operating
in low Earth orbit; the Space Network complexes that relay data from TDRS; the NASA Integrated Services Net-
work, which enables communications between all Agency locations; and the Deep Space Network, an international
network of antennas that support NASA’s Earth-orbiting and interplanetary missions. The Space Operations
Mission Directorate’s Space Communications Program is developing a new space communications architecture
that will support the Agency’s exploration and science missions through 2030, as specified under Outcome 6.4.

The cost of performance for Strategic Goal 6 in FY 2006 was $665.26 million.

Outcome Ratings APG Ratings

43%
6
8
4

100% 57%

Under Strategic Goal 6, NASA is on track to Under Strategic Goal 6, NASA achieved 8 of
achieve all 4 Outcomes. 14 APGs.

OUTCOME 6.1: BY 2008, LAUNCH A LUNAR RECONNAISSANCE ORBITER (LRO) THAT WILL PROVIDE INFORMATION
ABOUT POTENTIAL HUMAN EXPLORATION SITES.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

NASA’s LRO mission, to be launched in 2008, will map the lunar surface to identify optimal landing sites, search for
potential resources, and characterize surface radiation levels. LRO’s laser altimeter will be able to peer into per-
manently shadowed craters at the lunar poles to map terrain while the Lunar Exploration Neutron Detector (LEND),
an instrument that detects chemical signatures, and Diviner Lunar Radiometer Experiment, which maps the lunar
surface temperature, search for evidence of polar ice. Craters on the lunar poles are particularly important for
exploration due to the possible presence of water ice.

Additional LRO capabilities include the following:


• Provide a Digital Elevation Model (DEM), accurate to one meter vertically and 50 meters horizontally. The DEM
also will provide the local slope, necessary for safe landing;

PART 2 • DETAILED PERFORMANCE DATA 133


• Acquire high-resolution photographs (better than one-meter resolu-
tion) of potential landing sites, which NASA will assess for hazards and
changing lighting conditions;
• Characterize the terrain, including surface roughness and rock abun-
dance using the laser altimeter or reflected ultraviolet light;
• Characterize potential resources and lighting conditions, necessary to
control the effectiveness and utility of solar power systems; and
• Support the assessment of biological risks from radiation levels.
During FY 2006, NASA completed the mission’s preliminary design
review. In July, NASA awarded a launch services contract for LRO to
Lockheed Martin Commercial Launch Services, Inc. LRO will launch aboard a In this artist’s impression, the
Lockheed Martin Atlas V rocket in late 2008. Shepherding Spacecraft waits in
the foreground while the Centaur
In September 2006, NASA began the program design review for the LCROSS heads toward the Moon’s south polar
mission that will fly with LRO. As LCROSS approaches the Moon’s south region. (NASA)
polar region, it will split into two vehicles: the Shepherding Spacecraft and
the Centaur Upper Stage. Centaur will impact a crater in the south polar region, sending up a plume of debris. The
Shepherding Spacecraft will fly through the plume, and instruments on the spacecraft will analyze the cloud to look
for signs of water and other compounds.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6SSE1 Complete Lunar Reconnaissance Orbiter (LRO) Preliminary Design Review (PDR).
None None None
Green

OUTCOME 6.2: BY 2012, DEVELOP AND TEST TECHNOLOGIES FOR IN-SITU RESOURCE UTILIZATION, POWER
GENERATION, AND AUTONOMOUS SYSTEMS THAT REDUCE CONSUMABLES LAUNCHED FROM EARTH AND MODERATE
MISSION RISK.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

NASA is developing the necessary tools, technologies, and capabilities to support the Agency’s lunar return
program: producing oxygen from lunar soil, creating advanced rovers for surface mobility, advancing concepts
for cryogenic propellant storage, developing propulsion systems that use propellants created from lunar surface
resources, and improving radiation-hardened microelectronics to reduce mission risk.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Identify and test technologies to enable affordable pre-positioning of logistics for
human exploration missions. Technology development includes high-power electric
6ESRT1
thrusters and high efficiency solar arrays for solar electric transfer vehicles, and None None None
Green
lightweight composite cryotanks and zero boil-off thermal management for in-space
propellant depots.
Identify and test technologies to enable in-space assembly, maintenance, and
6ESRT2 servicing. Technology development includes modular truss structures, docking
None None None
White mechanisms, micro-spacecraft inspector, intelligent robotic manipulators, and ad-
vanced software approaches for telerobotic operations.
Identify and test technologies to reduce mission risk for critical vehicle systems,
6ESRT3 supporting infrastructure, and mission operations. Technology development
None None None
Green includes reconfigurable and radiation tolerant computers, robust electronics for ex-
treme environments, reliable software, and intelligent systems health management.

134 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Design and test technologies for in situ resource utilization that can enable more
affordable and reliable space exploration by reducing required launch mass from
6ESRT4 Earth, and by reducing risks associated with logistics chains that supply consum-
None None None
Green ables and other materials. Technology development includes excavation systems,
volatile material extraction systems, and subsystems supporting lunar oxygen and
propellant production plants.
Validate the ESMD research and technology development needs and opportunities
6ESRT5
by implementing a Quality Function Deployment process, and use the results to None None None
White
guide ESR&T program investment decisions.
Develop and analyze affordable architectures for human and robotic exploration
6ESRT6
system and mission options using innovative approaches such as modular systems, None None None
Green
in-space assembly, pre-positioning of logistics, and utilization of in-situ resources.
6ESRT7 Identify and define technology flight experiment opportunities to validate the
None None None
White performance of critical technologies for exploration missions.
Identify and test technologies to reduce the costs of mission operations. Technol-
6ESRT8
ogy development includes autonomous and intelligent systems, human–automation None None None
Green
interaction, multi-agent teaming, and space communications and networking.

Performance Shortfalls
6ESRT2, 6ESRT5, and 6ERT7: NASA canceled all work related to in-space assembly (6ESRT2) and the In-space
Technology Experiments (InSTEP) project (6ESRT7). NASA also decided that the Quality Function Deployment
Process was no longer needed.

OUTCOME 6.3: BY 2010, IDENTIFY AND CONDUCT LONG-TERM RESEARCH NECESSARY TO DEVELOP NUCLEAR
TECHNOLOGIES ESSENTIAL TO SUPPORT HUMAN–ROBOTIC LUNAR MISSIONS AND THAT ARE EXTENSIBLE TO EXPLORATION
OF MARS.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

During FY 2006, NASA reformulated the Prometheus Power and Propulsion Program to better align it with the
Vision for Space Exploration and available Agency resources by focusing the program on surface nuclear power
system development. Therefore, most of the program’s FY 2006 activities revolved around closing out nuclear
electric propulsion efforts. In addition, program staff began reformulating program objectives and reviewed lessons
learned and various studies to aid them in transitioning to a long-term research and technology program. NASA
and U.S. Department of Energy (DoE) power experts began the Affordable Fission Surface Power System Study.
NASA anticipates a report in mid-FY 2007.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6PROM1 Following completion of the Prometheus Analysis of Alternatives, complete space
None None None
White nuclear reactor conceptual design.
6PROM2 Verify and validate the minimum functionality of initial nuclear electric propulsion
None None None
White (NEP) spacecraft capability.
6PROM3 Complete component level tests and assessments of advanced power conversion
None None None
White systems.

PART 2 • DETAILED PERFORMANCE DATA 135


Performance Shortfalls
6PROM1, 6PROM2, and 6PROM3: NASA canceled these APGs due to a program focus shift from nuclear electric
propulsion development to surface nuclear power systems development. NASA will provide appropriately revised
APGs for Outcome 6.3 in the FY 2007 Performance Plan Update to accompany the Agency’s FY 2008 Budget
Estimates. Meanwhile, the Prometheus project will continue work toward achieving Outcome 6.3 on schedule.

OUTCOME 6.4: IMPLEMENT THE SPACE COMMUNICATIONS AND NAVIGATION ARCHITECTURE RESPONSIVE TO SCIENCE AND
EXPLORATION MISSION REQUIREMENTS.
FY 2006 FY 2005 FY 2004 FY 2003
Green None None None

NASA is developing a Space Communications Architecture that will provide the necessary communication and
navigation services for the Agency’s space exploration and science missions through 2030. This architecture
will provide communication services to space missions operating anywhere in the solar system and will fea-
ture clustered networking services at Earth, the Moon, and Mars to provide faster, more reliable communication
connections. In March 2006, the Space Communications Architecture Working Group presented the proposed
architecture, including details about network connections, security protocols, radio frequency-spectrum alloca-
tions, and navigation support functions, to the Agency’s Strategic Management Council. Agency management is
reviewing the implementation plans for this architecture that NASA expects to have operational by 2014.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


6SFS1 Establish the Agency-wide baseline space communications architecture, including a 5SFS8 4SFS8
None
Green framework for possible deep space and near Earth laser communications services. Green Green
6SFS3 Achieve at least 95 percent of planned data delivery for the International Space 5SFS16 4SFS5 3H14
Green Station, each Space Shuttle mission, and low Earth orbiting missions for FY 2006. Blue Blue Blue

136 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

Cross-Agency Support Programs


NASA created Cross-Agency Support Programs—introduced in the FY 2007 Budget Estimates and included in
the FY 2006 Performance Plan, reported on in this document—to focus on several ongoing activities that function
across all Mission Directorates and Mission Support Areas to serve NASA’s Mission and to establish an improved
way of managing NASA’s unique facilities.

Outcome Ratings APG Ratings

20%
2

3 8

100% 80%

Under Cross-Agency Support Programs, Under Cross-Agency Support Programs,


NASA is on track to achieve all 3 Outcomes. NASA achieved 8 of 10 APGs.

Education
A young explorer
Achieving the Vision for Space Exploration will require a builds a rocket at Astro
workforce that is equipped with the skills and capabilities Camp hosted by the
necessary to meet future mission needs. In the near-term, Stennis Space Center.
NASA will meet these needs by training current employees NASA’s Centers hold
events, provide educa-
and bringing new employees with new capabilities into the tion opportunities, and
Agency. To meet long-term needs, NASA’s Education pro- develop projects that
grams will help create the workforce of the future by inspiring help NASA’s Education
students at all levels to pursue careers in science, technology, programs achieve their
engineering, and mathematics (STEM), providing professional- objectives. (NASA)
development opportunities to STEM teachers, and developing
interesting STEM content for the classroom, the Web, and infor-
mal learning environments like museums and community-based
organizations.

OUTCOME ED–1: CONTRIBUTE TO THE DEVELOPMENT OF THE STEM WORKFORCE IN DISCIPLINES NEEDED TO ACHIEVE
NASA’S STRATEGIC GOALS THROUGH A PORTFOLIO OF PROGRAMS.
FY 2006 FY 2005 FY 2004 FY 2003
Green None None None

In FY 2006, NASA redesigned the Agency’s Education programs to maximize returns on education investments.
NASA awarded over 10,000 competitive scholarships, fellowships, and research opportunities for graduates,
undergraduates, underprivileged students, and faculty in STEM disciplines. The Agency uses these scholarships,
fellowships, and research opportunities to build student interest in NASA and to increase partnerships with informal
and formal education providers. Education program managers now are tracking students who receive scholarships
or fellowships to determine their level of involvement with NASA after their formal education is complete. This track-
ing initiative also will help identify opportunities for improving the Agency’s education programs.

PART 2 • DETAILED PERFORMANCE DATA 137


To provide a historical base and additional lessons learned, NASA also is planning a retrospective survey of current
employees who participated in NASA education programs.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Award approximately 1,000 competitive scholarships, fellowships, and research
6ED3
opportunities for higher education students and faculty in STEM disciplines. (APG None None None
Green
revised: awards reduced from 1,500 to 1,000 based on FY 2006 Appropriation.)
Complete a retrospective longitudinal study of student participants to determine the
6ED4
degree to which participants entered the NASA workforce or other NASA-related None None None
Yellow
career fields.
Collect, analyze, and report longitudinal data on student participants to determine
6ED5
the degree to which participants enter the NASA workforce or other NASA-related None None None
Green
career fields.
Award approximately 250 competitive scholarships, internships, fellowships, and
6ED6 research opportunities for underrepresented and underserved students, teachers,
None None None
Green and faculty in STEM disciplines. (APG revised: awards reduced from 1,100 to 250
based on FY 2006 Appropriation.)
Provide approximately 50 grants to enhance the capability of approximately 25
underrepresented and underserved colleges and universities to compete for and
6ED7
conduct basic or applied NASA-related research. (APG revised: grants reduced None None None
Yellow
from 350 to 50, and the number of colleges and universities awarded reduced from
100 to 25, based on FY 2006 Appropriation.)

Performance Shortfalls
6ED4: NASA did not complete the retrospective study of student participants’ entry into the NASA workforce,
because the number of employees hired within the past decade was higher than expected. NASA will complete
the survey in FY 2007.

6ED7: NASA exceeded the number of institutions during FY 2006, but did not achieve the targeted number of
grant awards.

Advanced Business Systems (Integrated Enterprise Management Program)


NASA’s Integrated Enterprise Management Program (IEMP) is transforming the Agency’s business systems, pro-
cesses, and procedures to improve financial management and accountability and to increase efficiency and cost
savings across the Agency. IEMP projects currently underway include the following:
• eTravel, which will replace NASA’s Travel Manager system with an end-to-end travel management system;
• The Contract Management Module, which will provide a comprehensive tool to support contract writing,
contract administration, procurement workload management, and data reporting/management for NASA;
• The Human Capital Information Environment, which will provide online access to near real-time human capital
information;
• The Integrated Asset Management, Property, Plant, and Equipment module, which will focus on the account-
ability, valuation, and tracking of internal-use software, Theme assets, and personal property that is either
NASA-owned/NASA-held or NASA-owned/contractor-held;
• The SAP Version Update to enhance the Agency’s Core Financial system functionality; and
• The Aircraft Management Module, which will provide an integrated toolset that will enhance the management
and oversight of NASA’s mission management aircraft, mission support aircraft, and research aircraft.

138 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

Assessments
In FY 2006, the Office of Management and Budget (OMB) rated IEMP as “Moderately Effective” using the Program
Assessment Rating Tool (PART). IEMP received the following scores in the four PART assessment areas:
• Program Purpose and Design—80% (moderately effective)
• Strategic Planning—100% (effective)
• Program Management—88% (effective)
• Program Results/Accountability—67% (adequate)
The scores indicate that NASA has set valid annual and long-term goals for IEMP and established effective
processes for program management and financial oversight. However, the Agency should revise some of the
accountability processes to ensure consistent program effectiveness.

OUTCOME IEM–2: INCREASE EFFICIENCY BY IMPLEMENTING NEW BUSINESS SYSTEMS AND REENGINEERING AGENCY
BUSINESS PROCESSES.

FY 2006 FY 2005 FY 2004 FY 2003


Green None None None

Major FY 2006 efforts for IEMP include the Project Management Information Improvement (PMII) project and the
Agency Labor Distribution System (ALDS). The PMII Project enhanced the Core Financial system by implementing
policy adjustments and mapping data between financial structures and technical work breakdown structures. The
PMII project also improved the transmission of cost reporting information to project managers. NASA used ALDS
to replace legacy Center labor distribution systems with an Agency labor distribution system and standardized
processes based on new policies and procedures approved by NASA’s Chief Financial Officer.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Deliver an analysis and recommendations for long-term solutions to account for and
6IEM1 maintain the Agency’s assets defined as Property Plant & Equipment and Operating
None None None
Green Materials and Supplies (encompasses the major functions of Environmental, Facili-
ties, Logistics, and all related financial activities).

Innovative Partnerships Program


To achieve the Vision for Space Exploration in an affordable and sustainable manner, NASA partners with indus-
try and academia to leverage outside investments and expertise while giving the Agency’s partners an economic
incentive to invest in NASA programs. NASA’s Innovative Partnerships Program (IPP) attracts and maintains
Agency business partnerships and manages both intellectual property rights and technology transfer processes.

IPP serves all four Mission Directorates across NASA’s 10 Centers. Mission Directorates outline their technol-
ogy needs, and IPP helps satisfy those needs through research and development partnerships with industry and
academia, technology transfer with non-profit research institutions like universities, and commercialization
opportunities to help entrepreneurs develop NASA technologies for the marketplace.

NASA’s IPP managers spent much of FY 2006 examining precedents and establishing protocols that will help the
Agency partner with emerging space industry businesses.

PART 2 • DETAILED PERFORMANCE DATA 139


OUTCOME IPP–1: PROMOTE AND DEVELOP INNOVATIVE TECHNOLOGY PARTNERSHIPS AMONG NASA, U.S. INDUSTRY,
AND OTHER SECTORS FOR THE BENEFIT OF AGENCY PROGRAMS AND PROJECTS.

FY 2006 FY 2005 FY 2004 FY 2003


Green Green Blue None

In FY 2006, IPP established the Seed Fund Initiative. This initiative will enhance NASA’s ability to meet mission
technology goals by providing “bridge” funding between NASA and the Agency’s partners. This initiative also will
make programs more affordable by funding partnerships in which all parties involved share the costs, risks, ben-
efits, and outcomes.

NASA also formed a partnership with Red Planet Capital, Inc., to help advance the Agency’s technological position
through the venture capital community. Through this contract, NASA has established a strategic venture capital
fund to promote the future availability of technologies with government and commercial applications that meet
future mission requirements.

FY 2006 Annual Performance Goal FY 2005 FY 2004 FY 2003


Complete 50 technology transfer agreements with the U.S. private sector for
6ESRT9 5HRT18 4HRT6
transfer of NASA technologies, hardware licenses, software usage agreements, None
Green Green Green
facility usage agreements, or Space Act Agreements.
6ESRT10 Develop 40 industry partnerships that will add value to NASA missions. 5HRT13 4HRT9
None
Green Green Blue
6ESRT11 Establish at least twelve new partnerships with major ESMD R&D programs or
None None None
Green other NASA organizations.
6ESRT12 Award Phase III contracts or venture capital funds to 4 SBIR firms to further 5HRT14 4HRT10
None
Green develop or produce technology for U.S. industry or government agencies. Green Green

140 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Detailed Performance Data

Efficiency Measures APG Ratings

NASA uses the Agency’s Strategic Goals, multi-year Outcomes, and 26%
Annual Performance Goals (APGS) to measure performance progress in
9
program areas. NASA also uses Efficiency Measure APGs to track the
Agency’s performance in a number of management areas, including cost,
schedule, and project completion. 21
3
9%
NASA organizes the Efficiency Measure APGs by budget Theme to
emphasize and encourage individual program accountability. The follow- 1 62%
ing table documents the Agency’s performance against these metrics for 3%
FY 2006. Under Efficiency Measures, NASA
achieved 21 of 34 APGs.

FY 2006 Performance Measure FY 2005 FY 2004 FY 2003


Aeronautics Technology
6AT12 Deliver at least 90% of scheduled operating hours for all operations and research
None None None
Green facilities.
6AT13 Increase the annual percentage of research funding subject to external peer
None None None
Green review prior to award.
Education
6ED11 Collect, analyze, and report the percentage of grantees that annually report on
None None None
Green their accomplishments.
6ED12 Peer review and competitively award at least 80%, by budget, of research 5ED19 4ED24
None
Red projects. Green Green
Constellation Systems
6CS5 Complete all development projects within 110% of the cost and schedule
None None None
Green baseline.
6CS6 Increase annually the percentage of ESR&T and HSR&T technologies
None None None
Green transitioned to Constellation Systems programs.
Exploration Systems Research and Technology
6ESRT13 Complete all development projects within 110% of the cost and schedule
None None None
White baseline.
6PROM4 Complete all development projects within 110% of the cost and schedule
None None None
White baseline.
6ESRT14 Peer review and competitively award at least 80%, by budget, of research 5HRT15 4HRT13
None
White projects. Green Green
6ESRT15 Reduce annually, the time to award competed projects, from proposal receipt to
None None None
White selection.
6PROM5 Reduce annually, the time to award competed projects, from proposal receipt to
None None None
White selection.
Human Systems Research and Technology
6HSRT21 Deliver at least 90% of scheduled operating hours for all operations and research 5BSR19 4RPFS11
None
Green facilities. Green Green
6HSRT22 Increase annually, the percentage of grants awarded on a competitive basis.
None None None
White
Peer review and competitively award at least 80%, by budget, of research 4BSR19
6HSRT23 5BSR20
projects. 4PSR11 None
Green Green
Green
6HSRT247 Reduce time within which 80% of NRA research grants are awarded, from
None None None
Green proposal due date to selection, by 5% per year, with a goal of 130 days.

PART 2 • DETAILED PERFORMANCE DATA 141


FY 2006 Performance Measure FY 2005 FY 2004 FY 2003
Earth–Sun System
6ESS24 Complete all development projects within 110% of the cost and schedule 5SEC14 4ESS1
None
Red baseline. Red Green
6ESS25 Deliver at least 90% of scheduled operating hours for all operations and research 5SEC15
None None
Green facilities. Yellow
6ESS26 Peer-review and competitively award at least 80%, by budget, of research 5SEC16 4ESA8
None
Green projects. Green Green
6ESS27 Reduce time within which 80% of NRA research grants are awarded, from
None None None
Green proposal due date to selection, by 5% per year, with a goal of 130 days.
Solar System Exploration
6SSE29 Complete all development projects within 110% of the cost and schedule 5SSE15 4SSE1
None
Red baseline. Yellow Yellow
6SSE30 Deliver at least 90% of scheduled operating hours for all operations and research 5SSE16
None None
Green facilities. Green
6SSE31 Peer-review and competitively award at least 80%, by budget, of research 5SSE17 4SSE2
None
Green projects. Green Green
6SSE32 Reduce time within which 80% of NRA research grants are awarded, from
None None None
Green proposal due date to selection, by 5% per year, with a goal of 130 days.
The Universe
6UNIV22 Complete all development projects within 110% of the cost and schedule 5ASO13 4ASO1
None
White baseline. Green White
6UNIV23 Deliver at least 90% of scheduled operating hours for all operations and research 5ASO14
None None
Green facilities. Yellow
Peer-review and competitively award at least 80%, by budget, of research 4SEU2
6UNIV24 5ASO15
projects. 4ASO2 None
Green Green
Green
6UNIV25 Reduce time within which 80% of NRA research grants are awarded, from
None None None
Yellow proposal due date to selection, by 5% per year, with a goal of 130 days.
International Space Station
6ISS5 Complete all development projects within 110% of the cost and schedule 5ISS8 4ISS7
None
Green baseline. Green Green
6ISS6 Deliver at least 90% of scheduled operating hours for all operations and research 5ISS9
None None
Green facilities. Green
Space Flight Support
6SFS2 Maintain NASA success rate at or above a running average of 95 percent for 5SFS15 4SFS4 3H03
Green missions on the FY 2006 Expendable Launch Vehicle (ELV) manifest. Green Green Blue
6SFS7 Complete all development projects within 110% of the cost and schedule 5SFS21 4SFS14
None
White baseline. Green Green
6SFS8 Deliver at least 90% of scheduled operating hours for all operations and research 5SFS22 4RPFS11
None
Green facilities. Green Green
Space Shuttle
6SSP2 Complete all development projects within 110% of the cost and schedule 5SSP4 4SSP5
None
White baseline. Yellow Green
6SSP3 Deliver at least 90% of scheduled operating hours for all operations and research 5SSP5
None None
Green facilities. Green

142 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


NASA’s FY 2006 Performance Improvement Plan
The following table reports on APGs that NASA was unable to achieve fully in FY 2006 and multi-year Outcomes that NASA may not or will not achieve
by the Outcome’s targeted completion date. The table is organized by Strategic Goals and Sub-goals, with Efficiiency Measures at the end orga-
nized by budget Themes. For each performance shortfall, the table includes ia explanation of the specific performance problem and NASA’s plan and
schedule to achieve the measure in the future or an explanation of why the measure was canceled by management.

Performance Why the Measure Was Not Met Plans for Achieving the Measure
Measure Description Rating or Was Canceled (If Not Canceled)
Strategic Goal 1: Fly the Shuttle as safely as possible until its retirement, not later than 2010.
Outcome 1.1 Assure the safety and integrity of the The Space Shuttle Program reported and inves- NASA convened a mishap investigation board
Space Shuttle workforce, systems and tigated three major incidents in FY 2006. Two for each incident. The boards are on schedule

PART 2 • DETAILED PERFORMANCE DATA


processes, while flying the manifest. Type-B mishaps include damage to Discovery’s to complete their investigations and deliver
robotic manipulator arm caused while crews their final reports in FY 2007.
Yellow were servicing the Shuttle in the Orbiter Pro-
cessing Facility hangar, and damage to Atlantis’
coolant loop accumulator due to over-pressuriza-
tion. NASA also reported a personnel injury at
Kennedy Space Center’s Launch Complex 39A.
6SSP1 Achieve zero Type-A (damage to prop- The Space Shuttle Program reported and inves- NASA convened a mishap investigation board
erty at least $1M or death) or Type-B tigated three major incidents in FY 2006. Two for each incident. The boards are on schedule
(damage to property at least $250K or Type-B mishaps include damage to Discovery’s to complete their investigations and deliver
permanent disability or hospitalization of robotic manipulator arm caused while crews their final reports in FY 2007.
3 or more persons) mishaps in 2006. Red were servicing the Shuttle in the Orbiter Pro-
cessing Facility hangar, and damage to Atlantis’
coolant loop accumulator due to over-pressuriza-
tion. NASA also reported a personnel injury at
Kennedy Space Center’s Launch Complex 39A.
Strategic Goal 2: Complete the International Space Station in a manner consistent with NASA’s International partner commitments and the needs of
human exploration.
ISS3 Provide 80 percent of FY 2006 planned NASA was unable to meet the original goal of Shuttle schedules have been adjusted for
(Outcome 2.1) on-orbit resources and accommodations regularly scheduled Shuttle flights throughout FY 2007, but these schedules always are
to support research, including power, FY 2006 due to foam issues on the external tank. subject to change as circumstances warrant.
data, crew time, logistics and accom- Yellow While these issues were resolved, NASA did not
modations. launch the Shuttle until July 2006—10 months
after the start of FY 2006. Shuttle flight delays
reduced actual upmass and volume capabilities.

143
Detailed Performance Data
Performance Why the Measure Was Not Met Plans for Achieving the Measure

144
Measure Description Rating or Was Canceled (If Not Canceled)
Sub-goal 3A: Study Earth from space to advance scientific understanding and meet societal needs.
6ESS6 Improve level of customer satisfaction as The FY 2006 EOSDIS customer satisfaction Consistent with past practice, CFI provided
(This APG is measured by a baselined index obtained survey, performed by the Claes-Fornell Institute detailed survey data, which will enable NASA
repeated for through the use of annual surveys. (CFI), produced a score of 74, a decrease from a to focus its ongoing efforts to improve Earth
Outcomes high score of 78 in 2005, but above the federal science data, information, and services provi-
3A.1, 3A.2, government average of 71. sion. Specific attention will be given to ways of
Yellow
3A.3, 3A.4, maintaining and improving customer satisfac-
3A.5, and 3A.6) tion while also focusing on the potentially
conflicting, but very important, goals of
increasing the number and types of users
and new data types.
Outcome 3A.4 Progress in quantifying the key reser- Research results in 2006 enabled significant NASA will develop an Earth science roadmap
(With the addi- voirs and fluxes in the global water cycle progress in understanding and modeling the wa- based on the mission priorities established
tion of 6ESS22, and in improving models of water cycle ter cycle. However, delays in the development in the decadal survey, available in November
APGs are the change and fresh water availability. and launch of the Global Precipitation Measure- 2006. The Agency will use the roadmap to re-
Yellow
same as Out- ment (GPM) mission and the NPOESS Prepara- baseline the support available to GPM by the
come 3A.1) tory Project (NPP) will impact NASA’s progress end of 2006 and provide finalized support by
in this the spring of 2007. Program funding supports
science focus area. the NPP 2009 launch date.
6ESS22 Complete Global Precipitation Measure- NASA management deferred the GPM mission. N/A
(Outcome 3A.4) ment (GPM) Confirmation Review. NASA will develop an Earth science roadmap
based on the mission priorities established in
White the decadal survey expected from the National
Research Council in December 2006. The
Agency will use the roadmap to re-baseline the
support available to GPM by the spring 2007.
Outcome 3A.5 Progress in understanding the role of Cost overruns and technical difficulties delayed Program funding supports the NPP 2009
(With the addi- oceans, atmosphere, and ice in the cli- the NPOESS Preparatory Project (NPP) mission, launch date.
tion of 6ESS23, mate system and in improving predictive which will impact NASA’s progress in this science
Yellow
APGs are the capability for its future evolution. focus area.
same as Out-
come 3A.1)
6ESS23 Complete Operational Readiness Review Due to late delivery of the key Visible/Infrarerd NASA management postponed this review
(Outcome 3A.5) for the NPOESS Preparatory Project Imager/Radiometer Suite (VIIRS) instrument from until FY 2008.
Red
(NPP). a program partner, NASA moved the Operational
Readiness Review for NPP to September 2009.

NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Why the Measure Was Not Met Plans for Achieving the Measure
Measure Description Rating or Was Canceled (If Not Canceled)
Sub-goal 3B: Understand the Sun and its effects on Earth and the solar system.
6ESS21 Benchmark the assimilation of observa- NASA completed this benchmarking in support The National Research Council will finalize its
(Outcome 3A.7) tions and products in decision support of such areas as agricultural efficiency, air qual- evaluation by spring 2007. Results will be
systems serving applications of national ity, aviation, disaster management, and public available through http://aiwg.gsfc.nasa.gov,
Yellow
priority. Progress will be evaluated by health. However, the external evaluation was and will be addressed in the FY 2007
the Committee on Environmental and postponed, primarily due to delays related to Performance and Accountability Report.
National Resources. committee members’ schedules.
6ESS16 Successfully launch the Solar Terrestrial NASA postponed the STEREO launch due to STEREO launched in October 2006.
(This APG is Relations Observatory (STEREO). problems with the Delta II launch vehicle 2nd
repeated for Yellow stage tanks.

PART 2 • DETAILED PERFORMANCE DATA


Outcome 3B.2
and 3B.3)
Sub-goal 3C: Advance scientific knowledge of the solar system, search for evidence of life, and prepare for human exploration.
6SSE27 Successfully launch Dawn spacecraft. NASA delayed the launch of Dawn due to Dawn underwent reviews to address techni-
(Outcome 3C.1) Yellow technical difficulties. cal and cost issues and the launch is currently
scheduled for June 2007.
6SSE28 Successfully complete MErcury Surface, This measure was erroneously included in the N/A
(Outcome 3C.1) Space ENvironment, GEochemistry, and FY 2006 Performance Plan Update.
White
Ranging (MESSENGER) flyby of Venus. MESSENGER’s flyby of Venus was always
scheduled for October 2006 (FY 2007).
6SSE9 Successfully demonstrate progress in External reviewers deemed all of the evidence NASA-funded investigators are participat-
(Outcome 3C.2) understanding why the terrestrial planets presented for this APG as positive. However, ing in the European Space Agency’s Venus
are so different from one another. since the evidence was based on preliminary Express mission. Venus Express, launched in
Progress toward achieving outcomes results, the external reviewers rated the progress November 2005, arrived at Venus in April and
will be validated by external expert on this goal as less robust than the progress is orbiting the planet, studying its atmosphere
review. seen in other areas of planetary science. in detail. In addition, under the Discovery
Program 2006 Announcement of Opportunity,
Yellow NASA selected for concept study a return to
Venus mission. Vesper, the Venus Chemistry
and Dynamics Orbiter, proposes to significantly
advance understanding of the atmospheric
composition and dynamics of Venus, especial-
ly its photochemistry. Successful completion
of the concept study would allow continuation
into a full design effort.
6SSE19 Successfully demonstrate progress in The lack of direct measurements has limited The next two Mars missions, Phoenix, to
(Outcome 3C.2) understanding the character and extent NASA’s progress in this area. While laboratory be launched in 2007, and the Mars Science
of prebiotic chemistry on Mars. Prog- and field research enabled some progress, direct Laboratory, to be launched in 2009, have tech-
Yellow
ress toward achieving outcomes will be measurements have not been made since the nology to directly measure organic compounds
validated by external expert review. Viking missions in the 1970s. and potentially elucidate the character and
extent of prebiotic chemistry.

145
Detailed Performance Data
Performance Why the Measure Was Not Met Plans for Achieving the Measure

146
Measure Description Rating or Was Canceled (If Not Canceled)
Sub-goal 3C: Advance scientific knowledge of the solar system, search for evidence of life, and prepare for human exploration. (Continued)
6SSE20 Successfully demonstrate progress in Although the current missions at Mars are The next two Mars missions, Phoenix, to
(Outcome 3C.3) searching for chemical and biological sig- extremely capable and have exceeded expecta- be launched in 2007, and the Mars Science
natures of past and present life on Mars. tions, NASA did not design the instrumentation Laboratory, to be launched in 2009, have the
Yellow
Progress toward achieving outcomes will to address this objective. capability to measure organic compounds and
be validated by external expert review. mineralogy to search for chemical and biologi-
cal signatures of life.
Sub-goal 3D: Discover the origin, structure, evolution, and destiny of the universe, and search for Earth-like planets.
6UNIV19 Complete Gamma-ray Large Area Space NASA postponed the GLAST I&T due to elec- Spacecraft I&T is scheduled currently for early
(Outcome 3D.1) Telescope (GLAST) Spacecraft Integra- Yellow tronic parts problems and the need to change FY 2007.
tion and Test (I&T). release mechanisms on the spacecraft.
6UNIV20 Complete James Webb Space Tele- NASA revised the JWST schedule in response NASA moved the launch date to 2013. As a
(This APG is scope (JWST) Mission Preliminary Design to growth in the cost estimate that NASA had result, NASA will hold the PDR in March 2008.
repeated for Review (PDR). Red identified in FY 2005.
Outcome 3D.1,
3D.2, and 3D.3)
Outcome 3D.2 Progress in understanding how the first NASA made scientific progress toward this Out- The James Webb Space Telescope has un-
stars and galaxies formed, and how come, but delays in the development and launch dergone a comprehensive project replan. The
Yellow
they changed over time into the objects of JWST will impact future results. mission is scheduled to launch in 2013.
recognized in the present universe.
6UNIV16 Successfully demonstrate progress in The external review found that NASA made NASA will change this APG in FY 2007.
(Outcome 3D.2) discovering how the interplay of baryons, limited progress toward this performance goal.
dark matter, and gravity shapes galax- Comments included the opinion that this goal,
ies and systems of galaxies. Progress as written, was too challenging or ambitious, and
Yellow
toward achieving outcomes will be vali- suggested that it be dropped. Reviewers noted
dated by external expert review. that APGs 6UNIV14 and 6UNIV17 also will yield
information about the interplay of baryons, dark
matter, and gravity in the evolution of galaxies.
Outcome 3D.3 Progress in understanding how individual NASA made scientific progress on this Outcome, See SOFIA (6UNIV18) and JWST (6UNIV20)
stars form and how those processes but future results will be impacted by delays in performance measures.
ultimately affect the formation of plan- the SOFIA and JWST programs. These two new
Yellow
etary systems. facilities are expected to make significant prog-
ress in star formation studies because of their
mid- and far-infrared observation capabilities.

NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Why the Measure Was Not Met Plans for Achieving the Measure
Measure Description Rating or Was Canceled (If Not Canceled)
Sub-goal 3D: Discover the origin, structure, evolution, and destiny of the universe, and search for Earth-like planets. (Continued)
6UNIV18 Complete Stratospheric Observatory for NASA chartered a review in March 2006 to NASA will transfer the SOFIA airborne system
(Outcome 3D.3) Infrared Astronomy (SOFIA) Airworthiness document the status of the SOFIA Program and to DFRC in early 2007 to initiate the flight test
Flight Testing. to identify and analyze options. NASA deter- program. An operational readiness review will
mined the most appropriate course of action is follow completion of this extensive flight test
to continue the SOFIA Program with significant program in 2010.
Red
program restructuring, including transferring the
direct management of SOFIA’s airborne sys-
tem (aircraft and telescope) development and
extensive flight testing to Dryden Flight Research
Center.

PART 2 • DETAILED PERFORMANCE DATA


Outcome 3D.4 Progress in creating a census of NASA made scientific progress on the Outcome, Kepler I&T is scheduled to begin in June 2007,
extra-solar planets and measuring but delays in the development and deployment with a launch readiness date of November
their properties. Yellow of next generation missions will impact further 2008. NASA deferred the Space Interferom-
results. etry Mission (SIM) beyond the budget planning
period.
6UNIV5 Successfully demonstrate progress in Continued delays of SIM and Kepler constitute Kepler I&T is scheduled to begin in June 2007,
(Outcome 3D.4) determining how common Earth-like slow progress toward achieving this goal. with a launch readiness date of November
planets are and whether any might be 2008. NASA deferred the SIM beyond the
Yellow
habitable. Progress toward achieving budget planning period.
outcomes will be validated by external
expert review.
6UNIV21 Begin Kepler Spacecraft Integration and Inefficiencies, particularly with regard to work Kepler I&T is currently scheduled to begin in
(Outcome 3D.4) Test (I&T). on the spacecraft’s photometer, caused delays June 2007, with a launch readiness date of
Yellow and cost impacts for the Kepler project and an November 2008.
inability to maintain the previous launch schedule
of June 2008.
Sub-goal 3E: Advance knowledge in the fundamental disciplines of aeronautics, and develop technologies for safer aircraft and higher capacity airspace
systems.
6AT14 Complete Aviation Safety Program The Aviation Safety Program delayed approval of Program management expects final approval
(Outcome 3E.1) restructuring activities in order to focus one of its four projects: The Integrated Resilient of this project during the first quarter of
research efforts more precisely on the Aircraft Controls, which develops capabilities FY 2007.
Yellow
Nation’s aviation safety challenges for to reduce (or eliminate) aircraft loss-of-control
the Next Generation Air Transportation accidents and ensure safe flight under off-
System (2025) and beyond. nominal conditions.

147
Detailed Performance Data
Performance Why the Measure Was Not Met Plans for Achieving the Measure

148
Measure Description Rating or Was Canceled (If Not Canceled)
Sub-goal 3E: Advance knowledge in the fundamental disciplines of aeronautics, and develop technologies for safer aircraft and higher capacity airspace
systems. (Continued)
(Outcome 3E.1) Utilizing a competitive peer-reviewed The Aviation Safety Program delayed approval of Program management expects final approval
selection process, determine the one of its four projects: The Integrated Resilient of this project during the first quarter of
research portfolio and partnerships to Aircraft Controls, which develops capabilities FY 2007.
enable advances in the Aviation Safety to reduce (or eliminate) aircraft loss-of-control
thrust areas (Integrated Intelligent Flight Yellow accidents and ensure safe flight under off-
Deck Technologies, Integrated Vehicle nominal conditions.
Health Management, Integrated Resilient
Aircraft Controls, and Aircraft Aging and
Durability.)
6AT16 Complete Airspace Systems Program The Airspace Systems Program delayed approval The approval of the NGATS Air Traffic
(Outcome 3E.2) restructuring activities in order to align of a portion of its project portfolio (the NGATS Management Airportal Project is expected
research efforts to address the Joint Air Traffic Management Airportal project) that will in the first quarter of FY 2007.
Planning and Development Office’s Next Yellow develop capabilities to increase throughput in ter-
Generation Air Transportation System minal and airport domains enabling NGATS.
(NGATS) capability requirements for
2025. (New APG)
6AT17 Utilizing a competitive peer-reviewed se- The Airspace Systems Program delayed approval The approval of the NGATS Air Traffic
(Outcome 3E.2) lection process, determine the research of a portion of its project portfolio (the NGATS Management Airportal Project is expected
portfolio and partnerships to enable Air Traffic Management Airportal project) that will in the first quarter of FY 2007.
advances in the Airspace Systems thrust Yellow develop capabilities to increase throughput in ter-
areas (Next Generation Air Transporta- minal and airport domains enabling NGATS.
tion Systems and Super Density Surface
Management.) (New APG)
6AT8 Identify and document engine configura- This APG was part of NASA’s FY 2005 Vehicle N/A
(Outcome 3E.3) tion and noise reduction technologies Systems close-out activities. Due to Aeronautics
needed to enable 10 dB reduction in air- White Research Mission Directorate restructuring, this
craft system noise. (APG revised based APG no longer aligns with NASA’s research goals
on FY06 Appropriation.) and has been canceled.
6AT11 Complete trade study of unconventional This APG was part of NASA’s FY 2005 Vehicle N/A
(Outcome 3E.3) propulsion concepts for a zero-emissions Systems close-out activities. Due to Aeronautics
vehicle. White Research Mission Directorate restructuring, this
APG no longer aligns with NASA’s research goals
and has been canceled.
Sub-goal 3F: By 2008, develop and test candidate countermeasures to ensure the health of humans traveling in space.
6HSRT9 Complete renal stone countermeasure NASA researchers did not complete the renal Data collection from the final subject is
Yellow
(Outcome 3F.1) development. stone countermeasure study. scheduled for March 2007.

NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Why the Measure Was Not Met Plans for Achieving the Measure
Measure Description Rating or Was Canceled (If Not Canceled)
Sub-goal 3F: By 2008, develop and test candidate countermeasures to ensure the health of humans traveling in space. (Continued)
6HSRT14 Define requirements for the Condens- NASA canceled the Condensing Heat Exchanger N/A
(Outcome 3F.2) ing Heat Exchanger Flight experiment Flight experiment.
White
focused on improving space condenser
reliability.
Strategic Goal 4: Bring a new Crew Exploration Vehicle into service as soon as possible after Shuttle retirement.
6HSRT1 Complete the technology trade studies Due to changes in the Extravehicular Activity N/A
(Outcome 4.2) for both the in-space and surface EVA Systems architecture, NASA canceled the APGs
suits. under Outcome 4.2. NASA will include appropri-
ately revised APGs in the FY 2007 Performance

PART 2 • DETAILED PERFORMANCE DATA


White Plan Update submitted with the Agency’s
FY 2008 Budget Estimates. Meanwhile, the
Constellation Systems Program continues work
on a single, integrated spacesuit design to
support Outcome 4.2.
6HSRT2 Complete the system requirements Due to changes in the Extravehicular Activity N/A
(Outcome 4.2) review for both the in-space and surface Systems architecture, NASA canceled the APGs
exploration EVA suits. under Outcome 4.2. NASA will include appropri-
ately revised APGs in the FY 2007 Performance
White Plan Update submitted with the Agency’s
FY 2008 Budget Estimates. Meanwhile, the
Constellation Systems Program continues work
on a single, integrated spacesuit design to
support Outcome 4.2.
Strategic Goal 6: Establish a lunar return program having the maximum possible utility for later missions to Mars and other destinations.
6ESRT2 Identify and test technologies to enable Throughout FY 2006, NASA made program- N/A
(Outcome 6.2) in-space assembly, maintenance, and investment decisions based on the exploration
servicing. Technology development architecture, which determined the technology
includes modular truss structures, priorities for NASA’s lunar exploration program.
docking mechanisms, micro-spacecraft Based on these findings, NASA cancelled all
White
inspector, intelligent robotic manipula- work related to in-space assembly (6ESRT2) and
tors, and advanced software approaches the In-space Technology Experiments (InSTEP)
for telerobotic operations. project (6ESRT7). NASA also decided that the
Quality Function Deployment Process was no
longer needed.

149
Detailed Performance Data
Performance Why the Measure Was Not Met Plans for Achieving the Measure

150
Measure Description Rating or Was Canceled (If Not Canceled)
Strategic Goal 6: Establish a lunar return program having the maximum possible utility for later missions to Mars and other destinations. (Continued)
6ESRT5 Validate the ESMD research and technol- Throughout FY 2006, NASA made program- N/A
(Outcome 6.2) ogy development needs and opportuni- investment decisions based on the exploration
ties by implementing a Quality Function architecture, which determined the technology
Deployment process, and use the results priorities for NASA’s lunar exploration program.
to guide ESR&T program investment Based on these findings, NASA canceled all
White
decisions. work related to in-space assembly (6ESRT2) and
the In-space Technology Experiments (InSTEP)
project (6ESRT7). NASA also decided that the
Quality Function Deployment Process was no
longer needed.
6ESRT7 Identify and define technology flight Throughout FY 2006, NASA made program- N/A
(Outcome 6.2) experiment opportunities to validate the investment decisions based on the exploration
performance of critical technologies for architecture, which determined the technology
exploration missions. priorities for NASA’s lunar exploration program.
Based on these findings, NASA canceled all
White
work related to in-space assembly (6ESRT2) and
the In-space Technology Experiments (InSTEP)
project (6ESRT7). NASA also decided that the
Quality Function Deployment Process was no
longer needed.
6PROM1 Following completion of the Prometheus NASA canceled these APGs due to a program N/A
(Outcome 6.3) Analysis of Alternatives, complete space focus shift from nuclear electric propulsion
nuclear reactor conceptual design. development to surface nuclear power systems
development. NASA will include appropriately
revised APGs for Outcome 6.3 in the FY 2007
White
Performance Plan Update submitted with the
Agency’s FY 2008 Budget Estimates. Mean-
while, the Prometheus Program will continue
work toward achieving Outcome 6.3 on
schedule.
6PROM2 Verify and validate the minimum function- NASA canceled these APGs due to a program N/A
(Outcome 6.3) ality of initial nuclear electric propulsion focus shift from nuclear electric propulsion
(NEP) spacecraft capability. development to surface nuclear power systems
development. NASA will include appropriately
revised APGs for Outcome 6.3 in the FY 2007
White
Performance Plan Update submitted with the
Agency’s FY 2008 Budget Estimates. Mean-
while, the Prometheus Program will continue
work toward achieving Outcome 6.3 on
schedule.

NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Why the Measure Was Not Met Plans for Achieving the Measure
Measure Description Rating or Was Canceled (If Not Canceled)
Strategic Goal 6: Establish a lunar return program having the maximum possible utility for later missions to Mars and other destinations. (Continued)
6PROM3 Complete component level tests and NASA canceled these APGs due to a program N/A
(Outcome 6.3) assessments of advanced power conver- focus shift from nuclear electric propulsion
sion systems. development to surface nuclear power systems
development. NASA will include appropriately
revised APGs for Outcome 6.3 in the FY 2007
White
Performance Plan Update submitted with the
Agency’s FY 2008 Budget Estimates. Mean-
while, the Prometheus Program will continue
work toward achieving Outcome 6.3 on
schedule.

PART 2 • DETAILED PERFORMANCE DATA


Cross-Agency Support Programs: Education
6ED4 Complete a retrospective longitudinal NASA did not complete the retrospective study NASA is adjusting the survey instrument and
(Outcome ED-1) study of student participants to deter- of student participants’ entry into the NASA protocol and the survey will be completed in
mine the degree to which participants Yellow workforce due to technical issues directly related FY 2007.
entered the NASA workforce or other to the large population of potential survey
NASA-related career fields. respondents.
6ED7 Provide approximately 50 grants to NASA exceeded the number of institutions dur- NASA’s FY 2007 budget includes funds neces-
(Outcome ED-1) enhance the capability of approximately ing FY 2006, but did not achieve the targeted sary to achieve future goals.
25 underrepresented and underserved number of grant awards.
colleges and universities to compete for
Yellow
and conduct basic or applied NASA-
related research. (APG revised: grants
reduced from 350 to 50 based on FY
2006 Appropriation.)
Efficiency Measures: Education
6ED12 Peer review and competitively award NASA could not complete this performance NASA has briefed relevant Congressional
at least 80%, by budget, of research measure due to Congressionally directed, committee staff regarding the impact of
projects. site-specific projects which accounted for Congressional interest items. NASA’s FY 2007
Red approximately 50% of the Education Program’s program plan will achieve the target of 80%
appropriation. competitive awards unless Congressionally
directed appropriations exceed 20% of the
budget.

151
Detailed Performance Data
Performance Why the Measure Was Not Met Plans for Achieving the Measure

152
Measure Description Rating or Was Canceled (If Not Canceled)
Efficiency Measures: Earth–Sun System
6ESS24 Complete all development projects within The STEREO and AIM missions, scheduled for NASA will continue to conduct appropriate
110% of the cost and schedule baseline. completion in FY 2006, exceeded 110% of the reviews as the AIM mission progresses toward
cost and schedule baselines. After launch launch.
vehicle delays, STEREO was launched on
October 25, 2006, exceeding the baseline
schedule by 25%. The final cost exceeded the
Red
baseline by 26%. AIM is currently scheduled for
launch in spring 2007 and is expected to exceed
both the cost and schedule baselines by ap-
proximately 20% due to delays associated with
the launch vehicle and the failure of the SOFIE
instrument during observatory vibration testing.
Efficiency Measures: Solar System Exploration
6SSE29 Complete all development projects within The New Horizon and Dawn missions, scheduled NASA will continue to conduct appropriate re-
110% of the cost and schedule baseline. for completion in FY 2006, exceeded 110% of views as the Dawn mission progresses toward
the cost baseline. New Horizons, which was launch.
launched on time—January 19, 2006—exceeded
Red the cost baseline by 15%. The Dawn mission,
which underwent reviews to address technical
and cost issues, is expected to exceed the cost
baseline by 32% and the schedule baseline by
43% with the launch being delayed to 2007.
Efficiency Measures: The Universe
6UNIV22 Complete all development projects within NASA did not schedule development projects N/A
White
110% of the cost and schedule baseline. related to this APG for completion in FY 2006.
6UNIV25 Reduce time within which 80% of NRA NASA reduced the time necessary to award The Science Mission Directorate will continue
research grants are awarded, from 80% of NRA grants by 2.5% from FY 2005 to FY to make efforts to reduce processing times
proposal due date to selection, by 5% Yellow 2006, missing the 5% target. and expects to meet this APG assuming no
per year, with a goal of 130 days. changes in procurement requirements or
funding calendar.
Efficiency Measures: Exploration Systems Research and Technology
6ESRT13 Complete all development projects within The technology priorities identified by the N/A
110% of the cost and schedule baseline. White exploration architecture prompted restructuring
of the technology program.

NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Performance Why the Measure Was Not Met Plans for Achieving the Measure
Measure Description Rating or Was Canceled (If Not Canceled)
Efficiency Measures: Exploration Systems Research and Technology (Continued)
6ESRT14 Peer review and competitively award The Exploration Technology Development Pro- N/A
at least 80%, by budget, of research gram (ETDP) did not issue any competitive solici-
projects. tations this year for new research projects as a
White result of significant restructuring as mandated by
ESAS. In the future, ETDP may use competitive
solicitations where appropriate to address the
priorities for lunar exploration.
6ESRT15 Reduce annually, the time to award com- The ETDP did not issue any competitive solicita- N/A
peted projects, from proposal receipt to tions this year for new research projects as a

PART 2 • DETAILED PERFORMANCE DATA


selection. result of significant restructuring as mandated by
White
ESAS. In the future, ETDP may use competitive
solicitations where appropriate to address the
priorities for lunar exploration.
6PROM4 Complete all development projects within This APG pertains to the conceptual design of a N/A
110% of the cost and schedule baseline. Nuclear Electric Propulsion (NEP) reactor. NASA
White
has canceled the NEP project and all associated
activities.
6PROM5 Reduce annually, the time to award com- This APG pertains to the conceptual design of N/A
peted projects, from proposal receipt to White an NEP reactor. NASA has canceled the NEP
selection. project and all associated activities.
Efficiency Measures: Human Systems Research and Technology
6HSRT22 Increase annually, the percentage of In October 2005 NASA instituted the Human Re- N/A
grants awarded on a competitive basis. search Program (HRP) as a successor to the Hu-
man System Research and Technology (HSRT)
program. HRP has focused on directed research
White tasks, as approved in the Program Management
Plan (document number HRP-47051) to effec-
tively use available funding and other resources.
Therefore, this APG is no longer considered ap-
plicable by management directive.
Efficiency Measures: Space Flight Support
6SFS7 Complete all development projects within There are no developmental programs in this N/A
White
110% of the cost and schedule baseline. organization.
Efficiency Measures: Space Shuttle
6SSP2 Complete all development projects within NASA will retire the Space Shuttle once its role N/A
110% of the cost and schedule baseline. in International Space Station assembly is
White complete, by 2010. NASA does not plan to
implement any additional major modifications to
the Space Shuttle system before retirement.

153
Detailed Performance Data
154 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Part 3: Financials
Previous page: A trainer helps lower astronauts Joseph Tanner and Heidemarie Stefanyshyn-Piper (partially obscured),
both STS-115 mission specialists, into the water of NASA’s Neutral Buoyancy Laboratory, located near the Johnson Space
Center. Tanner and Stefanyshyn-Piper are attired in training versions of the Extravehicular Mobility Unit spacesuit. SCUBA-
equipped divers are in the water to assist the crewmembers in their rehearsal, intended to help prepare them for work on
the exterior of the International Space Station. (NASA)
Above: Astronaut Clayton Anderson, wearing shorts and a skull cap, remains still during a three-hour process in which
NASA technicians use new laser technology to gather data about his physical measurements (large photo). The tech-
nicians use the data to create a three-dimensional Audio Video Interleaved file of the astronaut’s body (upper left) that
they can use to match the astronaut with a spacesuit of the correct size and shape. By expanding and analyzing the
database, scientists and engineers can determine what kinds of general body shapes, heights, arm lengths, hand sizes,
and and other measurements are most common among those selected to fly in space. (NASA)

156 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Message from
the Chief Financial Officer

NASA’s financial community enters fiscal year (FY) 2007 with an unwavering commit-
ment to achieving financial management excellence. Recognizing the progress we
have made over the past year, we acknowledge continued room for improvement and
fully accept responsibility for improving the health and operation of the Agency’s finan-
cial management processes.

In FY 2006, the Agency implemented a broad program of corrective actions to address


its financial management weaknesses. Progress on those corrective actions is the result
of significant cross-Agency effort. Much of the work that remains is in the stabilization
of improved processes so that they consistently and regularly deliver expected results.
In their report, the Agency’s independent auditors acknowledged the progress made
in NASA’s financial management processes, particularly in the areas of differences in
Fund Balance with Treasury and the estimation of Unfunded Environmental Liabilities.
I am pleased to report that both of these weaknesses were resolved in FY 2006. NASA will continue to monitor
reconciliation processes and other associated controls to ensure that these accounts remain firmly in control.

While the Agency has made progress, significant challenges remain. The Agency’s independent auditors, have
noted two modified repeat conditions, both material weaknesses, for FY 2006: Financial Systems, Analyses and
Oversight; and Property, Plant and Equipment. System and process limitations continue to require compensating
controls, and have limited NASA’s ability to accumulate, analyze, and distribute reliable financial information. The
Agency recognizes these deficiencies and continues to work diligently toward their resolution. We invite you to read
the expanded financial management section that follows to learn more about these weaknesses and the improve-
ment actions we completed in FY 2006.

In addition to the corrective actions taken, FY 2006 was also a year of preparation for a major update to NASA’s
Core Financial system. Enhancements to the system, to be implemented with the beginning of FY 2007, will further
integrate our process changes and improve our systems. Also, we will continue to use the practice initiated last
year to develop a FY 2006 Financial Audit Corrective Action Plan. We are working diligently to meet the require-
ments for an opinion to be rendered on our FY 2007 financial statements.

NASA’s mission success includes healthy financial management and effective reporting on the resources entrusted
to the Agency. We remain dedicated to achieving that mission.

Sincerely,

Gwendolyn Sykes
Chief Financial Officer

PART 3 • FINANCIALS 157


Financial Management Improvement
In FY 2006, NASA implemented a Financial Audit Corrective Action Plan (CAP) to address weaknesses identified in
the 2005 financial audit. The steps the Agency took in support of the CAP leveraged the stabilization gains made
in 2005. As of the 3rd Quarter of FY 2006, the Office of Management and Budget (OMB) acknowledged NASA’s
progress toward improved financial management by upgrading its measure for NASA’s Financial Management PMA
progress to “Yellow.”

The Agency recognizes that there is much work to be done as it continues to improve NASA’s financial man-
agement performance. NASA is aggressively working toward eliminating all financial weaknesses as a part of
the Agency’s effort toward achieving auditable financial records and actionable financial information for decision
making. A summary of progress and accomplishments, by FY 2005 audit weakness, follows.

2006 Financial Management Improvement Efforts


1. Financial Systems, Analyses, and Oversight
To improve NASA’s ability to accumulate, analyze and distribute reliable financial information, the Agency has
developed and is implementing procedures to validate financial data and processes in the Agency’s Core Financial
system, strengthened internal controls to ensure consistency with authoritative guidance, and aligned its external
financial reporting with federal requirements.
Statement of Material Weakness:
Following NASA’s Financial Management Requirements, Financial Systems, Analyses, and Oversight
Volume 19—Periodic Monitoring Controls Activities, each
Summary Auditor Finding:
NASA Center conducts regular reconciliations of key financial
“Although progress was made [since the 2004
accounts or activities. The results of these reconciliations, audit], significant financial management issues
including associated corrective action plans, are certified continue to impair NASA’s ability to accumu-
by Center CFOs and reported to NASA Headquarters on a late, analyze, and distribute reliable financial
monthly basis. As a result, NASA is given a view of any emerg- information.”
ing systemic data integrity issues, which facilitates coordi- (Reference: NASA FY 2005 Performance and
nated improvements designed to eliminate the root causes of Accountability Report (PAR), Part 3, page 193)
issues.

In addition, the Agency prepares monthly and quarterly Agency financial statements within 30 days of period
close. This process includes the documentation of any data anomalies or corrections, and statement analyses.
Monthly financial statements are used to ensure appropriate processing of financial information. Also, compared to
FY 2005, NASA modified the presentation of its Statement of Net Costs to provide a breakdown of net costs by
major lines of business, consistent with Office of Management and Budget Circular A-136. The ability to associate
costs to major lines of business is a result of a major account structure change that NASA introduced at the begin-
ning of the fiscal year.

Finally, the Agency developed and published monthly financial metrics, providing both process and outcome
measures of NASA’s financial performance. These metrics are reviewed at monthly financial management senior
leader-ship meetings to discuss performance and trends, and to share best practices.

Throughout 2007, the Agency will continue to review and certify Center-level financial accounts and activities on
a monthly basis. Financial statements and metrics, also on a monthly basis, will be prepared and reviewed by
management.

2. Property, Plant and Equipment


To address material weaknesses in Property, Plant and Equipment accounting, NASA has taken steps in FY 2006
to rectify policy and process weaknesses.

NASA is considering a change in its accounting policy for Theme Assets to reclassify some costs previously
categorized as General Property, Plant & Equipment (PP&E) as Research and Development (R&D) expenses. In

158 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

FY 2006, NASA drafted a policy to implement this change and


requested that FASAB clarify the accounting standards the Statement of Material Weakness:
Enhancements needed for controls over Property,
Agency used as the basis for the draft change. NASA antici-
Plant and Equipment (PP&E) and materials
pates a response from FASAB in FY 2007.
Summary Auditor Finding:
Also in 2006, NASA implemented compensating controls to “Consistent with prior year audit reports, our
address PP&E process weaknesses, including establishment review of property, plant, and equipment (PP&E),
of procurement guidance to facilitate improved accounting totaling approximately $35.0 billion, identified
serious weaknesses in internal control that, if not
for property furnished to contractors. NASA is developing
corrected, could prevent material misstatements
improved business processes for all asset categories to from being detected and corrected in a timely
improve the effective lifecycle management of PP&E. manner.”
(Reference: NASA FY 2005 Performance and
In 2007, the Agency expects to finalize its accounting treat- Accountability Report (PAR), Part 3, page 203)
ment policy for NASA’s Theme Assets. Also, NASA will align
policies, processes and systems for all of its asset categories
with the appropriate accounting treatments. This includes
alignment of contract requirements, related primarily to con-
tractor property reporting, with agreed upon policies. Statement of Material Weakness:
Further Research Required to Resolve Fund
3. Fund Balance with Treasury Balance With Treasury Differences
To address NASA’s 2005 material weakness in Fund Balance Summary Auditor Finding:
with Treasury (FBWT), the Agency has resolved outstanding “Although we were informed that many errors
reconciling items from prior periods and introduced reconcilia- from FY 2003 were resolved, significant errors
within the accounting system were still being
tion procedures that are tracking current period differences so
identified by NASA in FY 2005. Fund balance with
they may be resolved in a timely manner. NASA Centers are Treasury reconciliation processes were ineffective
required to provide monthly reconciliation reports for Agency in FY 2004 and much of FY 2005, through the date
measurement and oversight. of our visits to centers, but it is our understanding
that steps taken by NASA in the last quarter of the
NASA will continue to monitor FBWT differences on a monthly year are believed by NASA management to have
basis. Corrective actions will be taken on each difference, and substantially improved the effectiveness of such
progress on those actions will be monitored to ensure that reconciliations.”
differences are resolved in a timely manner. (Reference: NASA FY 2005 Performance and
Accountability Report (PAR), Part 3, page 201)
4. Estimation of Environmental Liabilities
To address weaknesses in the estimation of NASA’s unfunded
environmental liabilities (UEL), the Agency implemented poli-
cies, processes, tools and training that generated auditable Statement of Reportable Condition:
estimates of UEL for all Centers by the second Quarter of Internal controls in estimating NASA’s Environ-
FY 2006. mental Liabilities require enhancement
Summary Auditor Finding
To develop these estimates, NASA enhanced the policies “During our review of NASA’s environmental liabil-
and procedures for the estimation of unfunded environmental ity estimates totaling $825 million as of September
liabilities for both environmental engineers and accountants. 30, 2005, and related disclosures to the financial
These policies and procedures are documented and consis- statements, we continued to note weaknesses in
tent for all Centers, resulting in more uniform, reliable and valid NASA’s ability to generate an auditable estimate
estimates. of its unfunded environmental liabilities (UEL) and
to identify potential financial statement disclosure
The Agency also held joint training classes for environmental items because of a lack of sufficient, auditable evi-
engineers and accountants responsible for determining and dence.”
documenting unfunded environmental liability (UEL) to ensure (Reference: NASA FY 2005 Performance and
Accountability Report (PAR), Part 3, page 207)
consistent understanding and practice.

PART 3 • FINANCIALS 159


Introduction to the Principal Financial Statements
The Principal Financial Statements have been prepared to report the financial position and results of operations of
the National Aeronautics and Space Administration (NASA). The Statements have been prepared from the books
and records of NASA in accordance with formats prescribed by the Office of Management and Budget (OMB) in
Circular A-136, Financial Reporting Requirements. The statements are in addition to financial reports prepared
by the Agency in accordance with OMB and U.S. Department of the Treasury (Treasury) directives to monitor and
control the status and use of budgetary resources, which are prepared from the same books and records. The
statements should be read with the understanding that they are for a components of the U.S. Government, a sov-
ereign entity. The Agency has no authority to pay liabilities not covered by budgetary resources. Liquidation of such
liabilities requires enactment of an appropriation. Comparative data for 2005 are included where available.

NASA’s Principal Financial Statements include the following:

The Consolidated Balance Sheet provides information on assets, liabilities, and net position similar to balance
sheets reported in the private sector. Assets must equal the sum of liabilities and net position.

The Consolidated Statement of Net Cost reports the components of the net costs of the Agency’s operations for
the period. The net cost of operations consists of the gross cost incurred by the Agency less any exchange (i.e.,
earned) revenue from activities.

The Consolidated Statement of Changes in Net Position reports the beginning net position, the transactions
that affect net position for the period, and the ending net position.

The Combined Statement of Budgetary Resources provides information on how budgetary resources were
made available and their status at the end of the year. Information in this statement is reported on the budgetary
basis of accounting.

The Consolidated Statement of Financing reports the relationship between budgetary transactions and financial
transactions.

Required Supplementary Stewardship Information provides information on the Agency’s Research and
Development costs.

Required Supplementary Information contains a Combined Statement of Budgetary Resources and information
on Deferred Maintenance.

160 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Consolidated Balance Sheet
As of September 30, 2006, and September 30, 2005
(In Millions)

Unaudited 2006 Unaudited 2005


Assets (Note 2):
Intragovernmental Assets
Fund Balance with Treasury (Note 3) $ 9,585 $ 8,146
Investments (Note 4) 17 17
Accounts Receivable, Net (Note 5) 180 136
Total Intragovernmental Assets 9,782 8,299

Accounts Receivable, Net (Note 5) 5 60


Inventory and Related Property, Net (Note 6) 2,330 3,019
General Property, Plant and Equipment, Net (Note 7) 33,193 34,926
Total Assets $ 45,310 $ 46,304

Stewardship PP&E (Note 17)

Liabilities (Note 8):


Intragovernmental Liabilities
Accounts Payable $ 145 $ 56
Other Liabilities (Note 9) 157 124
Total Intragovernmental Liabilities 302 180

Accounts Payable 1,703 2,076


Federal Employee and Veteran Benefits 60 62
Environmental and Disposal Liabilities (Note 10) 893 825
Other Liabilities (Notes 9 and 11) 355 340
Total Liabilities 3,313 3,483

Net Position:
Unexpended Appropriations 6,981 5,318
Cumulative Results of Operations 35,016 37,503
Total Net Position 41,997 42,821
Total Liabilities and Net Position $ 45,310 $ 46,304

The accompanying notes are an integral part of this statement.

PART 3 • FINANCIALS 161


National Aeronautics and Space Administration
Consolidated Statement of Net Cost
For the Fiscal Year Ended September 30, 2006
(In Millions)

Cost by Business Line

Unaudited 2006

Science

Gross Costs $ 6,628


Less: Earned Revenue 348
Net Costs 6,280

Exploration Systems
Gross Costs 2,704
Less: Earned Revenue 88
Net Costs 2,616

Aeronautics Research
Gross Costs 1,129
Less: Earned Revenue 79
Net Costs 1,050

Space Operations
Gross Costs 8,120
Less: Earned Revenue 424
Net Costs 7,696

Net Cost of Operations $ 17,642

The accompanying notes are an integral part of this statement.

162 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Consolidated Statement of Net Cost
For the Fiscal Year Ended September 30, 2005
(In Millions)

Unaudited 2005

Program Cost:

Gross Costs $ 16,085


Less: Earned Revenues 879
Net Cost of Operations $ 15,206

The accompanying notes are an integral part of this statement.

PART 3 • FINANCIALS 163


National Aeronautics and Space Administration
Consolidated Statement of Changes in Net Position
For the Fiscal Years Ended September 30, 2006, and September 30, 2005
(In Millions)

Unaudited 2006 Unaudited 2005


Cumulative Results of Operations:
Beginning Balances $ 37,503 $ 36,934

Budgetary Financing Sources:


Appropriations Used 14,958 15,588
Nonexchange Revenue 48 35

Other Financing Sources:


Transfers In Without Reimbursement — 1
Imputed Financing 149 151
Total Financing Sources 15,155 15,775

Net Cost of Operations (17,642) (15,206)


Net Change (2,487) 569
Cumulative Results of Operations $ 35,016 $ 37,503

Unexpended Appropriations:
Beginning Balances $ 5,318 $ 4,771

Budgetary Financing Sources:


Appropriations Received 16,842 16,324
Appropriations Used (14,958) (15,588)
Appropriations Transferred In/Out 26 —
Other Adjustments (247) (189)
Total Budgetary Financing Sources $ 1,663 $ 547
Total Unexpended Appropriations $ 6,981 $ 5,318
Net Position $ 41,997 $ 42,821

The accompanying notes are an integral part of this statement.

164 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Combined Statement of Budgetary Resources
For the Fiscal Years Ended September 30, 2006, and September 30, 2005
(In Millions)

Unaudited 2006 Unaudited 2005


Budgetary Resources:
Unobligated Balance, Brought Forward, October 1: $ 2,241 $ 3,101
Recoveries of Prior Year Unpaid Obligations 368 10

Budgetary Authority
Appropriation 16,843 16,315
Spending Authority from Offsetting Collections
Earned
Collected 989 851
Change in Receivables from Federal Sources 41 21
Change in Unfilled Customer Orders
Advance Received 57 10
Without Advance from Federal Sources (208) 117
Subtotal 17,722 17,314

Nonexpenditure Transfers, Net


Actual Transfers, Budget Authority 26 —

Permanently Not Available


Cancellations of Expired and No-year Accounts (37) (60)
Enacted Reductions (210) (129)
Total Budgetary Resources $ 20,110 $ 20,236

Status of Budgetary Resources:


Obligations Incurred (Note 14)
Direct $ 16,768 $ 16,979
Reimbursable 1,005 1,019
Total Obligations Incurred 17,773 17,998

Unobligated Balance
Apportioned 2,143 2,073
Exempt from Apportionment 4 4
Total Unobligated Balances, Available 2,147 2,077

Unobligated Balance Not Available 190 161


Total Status of Budgetary Resources $ 20,110 $ 20,236

The accompanying notes are an integral part of this statement.

PART 3 • FINANCIALS 165


National Aeronautics and Space Administration
Combined Statement of Budgetary Resources (Continued)
For the Fiscal Years Ended September 30, 2006, and September 30, 2005
(In Millions)

Unaudited 2006 Unaudited 2005


Change in Obligated Balance:
Obligated Balances, Net
Unpaid Obligations Brought Forward, October 1 (Note 13) $ 6,525 $ 4,972
Less: Uncollected Customer Payments from Federal Sources,
Brought Forward, October 1 552 413
Total Unpaid Obligated Balances, Net 5,973 4,559

Obligations Incurred, Net 17,773 17,998


Less: Gross Outlays 16,259 16,472

Less: Recoveries of Prior Year Unpaid Obligations 368 10


Change in Uncollected Customer Payments from Federal Sources 167 (138)

Obligated Balance, Net, End of Period


Unpaid Obligations 7,671 6,488
Less: Uncollected Customer Payments from Federal Sources 385 551
Total, Unpaid Obligated Balance, Net, End of Period 7,286 5,937

Net Outlays:
Net Outlays:
Gross Outlays 16,259 16,472
Less: Offsetting Collections 1,045 861
Less: Distributed Offsetting Receipts 8 —
Net Outlays $ 15,206 $ 15,611

The accompanying notes are an integral part of this statement.

166 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Consolidated Statement of Financing
For the Fiscal Years Ended September 30, 2006, and September 30, 2005
(In Millions)

Unaudited 2006 Unaudited 2005


Resources Used to Finance Activities:
Budgetary Resource Obligated
Obligations Incurred $ 17,773 $ 17,998
Less: Spending Authority from Offsetting Collections and Recoveries 1,247 1,009
Obligations Net of Offsetting Collections and Recoveries 16,526 16,989
Less: Offsetting Receipts 8 —
Net Obligations 16,518 16,989

Other Resources:
Transfers In Without Reimbursements — 1
Imputed Financing from Costs Absorbed by Others 149 151
Net Other Resources Used to Finance Activities 149 152

Total Resources Used to Finance Activities 16,667 17,141

Resources Used to Finance Items Not Part of the Net Cost of Operations
Change in Budgetary Resources Obligated for Goods, Services, and Benefits
Ordered but Not Yet Provided (1,598) (1,389)
Resources That Fund Expenses Recognized in Prior Periods (47) (194)
Budgetary Offsetting Collections and Receipts that Do Not Affect the Net Costs
of Operations—Other 55 (35)
Resources that Finance the Acquisition of Assets (3,474) (4,794)
Other Resources or Adjustments to Net Obligated Resources that Do Not Affect
Net Cost of Operation — (1)

Total Resources Used to Finance Items Not Part of


the Net Cost of Operations (5,064) (6,413)

Total Resources Used to Finance the Net Cost of Operations 11,603 10,728

The accompanying notes are an integral part of this statement.

PART 3 • FINANCIALS 167


National Aeronautics and Space Administration
Consolidated Statement of Financing (Continued)
For the Fiscal Years Ended September 30, 2006, and September 30, 2005
(In Millions)

Unaudited 2006 Unaudited 2005


Components of Net Cost That Will Not Require or Generate Resources in
the Current Period
Components Requiring or Generating Resources in Future Periods: (Note 16)
Increases\Decreases in Annual Leave Liability 8 (4)
Increase in Environmental and Disposal Liability 68 —
Increase in Exchange Revenue Receivable from the Public — 28
Other 180 44
Total Components of Net Cost that Will Require or Generate
Resources in Future Periods 256 68

Components Not Requiring or Generating Resources


Depreciation 5,730 4,417
Revaluation of Assets or Liabilities 7 —
Other 46 (7)
Total Components of Net Cost of Operations that Will Not Require or
Generate Resources 5,783 4,410
Total Components of Net Cost of Operations that Will Not Require or Generate
Resources in the Current Period 6,039 4,478

Net Cost of Operations $ 17,642 $ 15,206

The accompanying notes are an integral part of this statement.

168 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

The National Aeronautics and Space Administration (NASA) is an independent Agency that was established by Congress on
October 1, 1958 by the National Aeronautics and Space Act of 1958. NASA was incorporated from the Agency’s predecessor or-
ganization, the National Advisory Committee for Aeronautics, which provided technical advice to the United States aviation industry
and performed aeronautics research. Today, NASA serves as the fulcrum for initiatives by the U.S. in civil space and aviation.

As of August 2004, NASA is organized into four Business Lines which focus on the following objectives:

• Exploration Systems: creating new capabilities, supporting technologies and foundational research for affordable, sus-
tainable human and robotic exploration;
• Space Operations: providing critical enabling technologies for much of the rest of NASA through the Space Shuttle, the
International Space Station, and flight support;
• Science: exploring the Earth, moon, Mars, and beyond; charting the best route of discovery, and reaping the benefits of
Earth and space exploration for society; and
• Aeronautics Research: conducting research that will enhance significantly aircraft performance, environmental compat-
ibility, and safety, and that also will enhance the capacity, flexibility, and safety of the future air transportation system.

In addition, NASA has nine Business Line (Mission) Support Offices, including the Office of the Chief Financial Officer and
Institutions & Management. The Agency’s transformed structure includes a Strategic Management Council, an Operations
Management Council and a Program Management Council to integrate NASA’s strategic, tactical and operational decisions, and
a number of new or reconstituted committees that support NASA’s focus and direction. The transformed organizational structure
is designed to streamline the Agency and position it to better implement the Vision for Space Exploration.

The nine NASA Centers, NASA Headquarters, and the Jet Propulsion Laboratory carry out the activities of the Mission Director-
ates. The Jet Propulsion Laboratory is a federally funded Research and Development Center owned by NASA but managed by an
independent contractor.

The accompanying financial statements of NASA include the accounts of all funds which have been established and maintained to
account for the resources under the control of NASA management.

Basis of Accounting and Presentation

These consolidated financial statements are prepared in accordance with generally accepted accounting principles (GAAP) in the
United States of America as promulgated by the Federal Accounting Standards Advisory Board (FASAB) and the Office of
Management and Budget (OMB) Circular A-136, Financial Reporting Requirements. FASAB is recognized by the American Institute
of Certified Public Accountants (AICPA) as the official accounting standards-setting body of the United States government entities.
The statements include the financial position, net cost of operations, changes in net position, budgetary resources, and financing of
NASA, as required by the Chief Financial Officers Act of 1990 and the Government Management Reform Act of 1994.

The financial statements should be read with the realization they are a component of the U.S. government, a sovereign entity. One
implication of this is that liabilities cannot be liquidated without legislation providing resources and legal authority to do so. The ac-
counting structure of federal agencies is designed to reflect both accrual and budgetary accounting transactions. Under the accrual
method of accounting, revenues are recognized when earned and expenses are recognized when a liability is incurred, without
regard to receipt or payment of cash. Budgetary accounting facilitates compliance with legal constraints and controls over the use of
federal funds.

Budgets and Budgetary Accounting

NASA follows standard Federal budgetary accounting policies and practices in accordance with OMB Circular A-11, Preparation,
Submission and Execution of the Budget. Budgetary accounting facilitates compliance with legal constraints and controls over
the use of Federal Funds. Congress funds NASA using three appropriations: Science, Aeronautics and Exploration; Exploration
Capabilities; and Office of Inspector General.

PART 3 • FINANCIALS 169


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


The Science, Aeronautics and Exploration appropriation supports the following Business Lines: Science; Exploration Systems; and
Aeronautics Research. The Exploration Capabilities appropriation supports the Space Operations Business Line which includes the
Space Station, Space Shuttle, and Space and Flight Support. The Office of Inspector General appropriation funds the audit and
investigation activities of the Agency.

Reimbursements to NASA appropriations are used to fund agreements between the Agency and other federal entities or the public.
As part of its reimbursable program, NASA launches devices into space and provides tracking and data relay services for the U.S.
Department of Defense, the National Oceanic and Atmosphere Administration, and the National Weather Service.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.

NASA requires major contractors to provide an estimate of their anticipated billing prior to their sending the actual invoice to the
agency. In addition, NASA also requires the contractors to provide an estimate for the next month’s anticipated work. When NASA
receives these estimates they are compared to the contract under which the work is performed. If the estimate exceeds a specified
funding line item the program manager and the procurement official, as necessary, review the estimate prior to posting in the general
ledger as an estimated liability. If the review is not completed within the timeframe for quarterly or yearly reporting, the Agency
uses the estimates of activity through the current period to establish an estimated liability, however, in this instance the agency fully
recognizes that “no agency has the authority to pay liabilities not covered by budgetary resources.” Liability to the contractor is not
established by receipt of these estimates, but only when accepted by the Agency.

Fund Balance with Treasury

Treasury processes cash receipts and disbursements for NASA. Fund Balance with Treasury includes appropriated funds, trust
funds, deposit funds, and budget clearing accounts.

Investments in U.S. Government Securities

Investments include the following Intragovernmental non-marketable securities:

(1) National Aeronautics and Space Administration Endeavor Teacher Fellowship Trust Fund established from public donations in
tribute to the crew of the Space Shuttle Challenger.

(2) Science, Space and Technology Education Trust Fund established for programs to improve science and technology education.

Accounts Receivable

Most receivables are for reimbursement of research and development costs related to satellites and launch services. The allowance
for uncollectible accounts is based upon evaluation of public accounts receivable, considering the probability of failure to collect
based upon current status, financial and other relevant characteristics of debtors, and the relationship with the debtor. Under a
cross-servicing agreement with the Department of Treasury, public accounts receivable over 180 days delinquent are turned over
to Treasury for collection. The receivable remains on NASA’s books until Treasury determines the receivable is uncollectible or the
receivable is internally written off and closed out.

Inventory and Related Property

Inventory held by Centers and contractors that are repetitively procured, stored and issued on the basis of demand are considered
Operating Materials and Supplies, a category of Inventory and Related Property. Certain NASA contractors’ inventory management
systems do not distinguish between items that should be classified as materials and those that should be classified as depreciable
property. NASA reclassifies as property, all materials valued at $100,000 or greater, in support of large-scale assets such as the
Space Shuttle and the International Space Station.

170 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED


General Property, Plant and Equipment

The Agency and its contractors and grantees hold NASA-owned property, plant, and equipment. Property with a unit cost of
$100,000 or more and a useful life of 2 years or more is capitalized; all other property is expensed when purchased. Capitalized
costs include all costs incurred by NASA to bring the property to a form and location suitable for its intended use. Under provisions
of the Federal Acquisition Regulation (FAR), contractors are responsible for control over accountability for Government-owned prop-
erty in their possession. NASA’s contractors and grantees report on NASA property in their custody annually and its top contractors
report monthly.

Capitalized costs for internally developed software include the full costs (direct and indirect) incurred during the software develop-
ment stage only. For purchased software, capitalized costs include amounts paid to vendors for the software and material internal
costs incurred by the Agency to implement and make the software ready for use through acceptance testing. When NASA pur-
chases software as part of a package of products and services (for example: training, maintenance, data conversion, reengineering,
site licenses, and rights to future upgrades and enhancements), capitalized and non-capitalized costs of the package are allocated
among individual elements on the basis of a reasonable estimate of their relative fair market values. Costs that are not susceptible
to allocation between maintenance and relatively minor enhancements are expensed.

NASA capitalizes costs for internal use software when the total projected cost is $1,000,000 or more and the expected useful life of
the software is 2 years or more. These Financial Statements report depreciation expense using the straight-line method.

NASA began depreciating the International Space Station in FY 2001 when manned by the first permanent crew. Only the Station’s
major elements in space are depreciated; any on-ground elements are reported as Assets Under Construction (AUC) until launched
and incorporated into the existing Station structure.

Working Capital Fund

Congress established the NASA Working Capital Fund (WCF) during fiscal year 2003 with the enactment of the FY 2003 Appropria-
tions Act (P.L. 108-7). The Department of Treasury established a unique account for NASA that same fiscal year. During FY 2006
the NASA WCF consisted of two entities: 1) a Government-Wide Acquisition Contract (GWAC) that provides the latest in Information
Technology (IT) products. This provided a simplified process for obtaining high-end commercial IT hardware and software at favor-
able prices through volume buying. 2) An agency-wide Service Center, NASA Shared Services Center (NSSC).

NASA Shared Service Center

NASA Shared Services Center opened March 1, 2006 on the grounds of Stennis Space Center. The NSSC is a public/private
partnership between NASA and Computer Sciences Corporation Service Providers. The mixed staff of civil service and contractor
personnel, performs a variety of consolidated transactional and administrative activities that were once carried out at each NASA
center and Headquarters. These functions consisted of responsibilities in the following areas: Financial Management (FM), Human
Resources (HR), Information Technology (IT) and Procurement.

Liabilities Covered by Budgetary Resources

Liabilities covered by budgetary resources are liabilities that are covered by realized budgetary resources as of the balance sheet
date. Realized budgetary resources include new budget authority, unobligated balances of budgetary resources at the beginning
of the year, and spending authority from offsetting collections. Examples include accounts payable and salaries. Accounts Payable
includes amounts recorded for the receipt of goods or services furnished.

Liabilities and Contingencies Not Covered by Budgetary Resources

Generally liabilities not covered by budgetary resources are liabilities for which Congressional action is needed before budgetary
resources can be provided. Examples include the Federal Employees’ Compensation Act (FECA) actuarial liability and contingen-
cies.

Liabilities not covered by budgetary resources include certain environmental matters, legal claims, pensions and other retirement
benefits (ORB), workers’ compensation, annual leave, and closed appropriations.

PART 3 • FINANCIALS 171


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED


Reclassifications of 2005 Information

Certain reclassifications have been made to Fiscal Year 2005 financial statements and footnotes to conform to OMB’s changes to
Circular A-136 effective in Fiscal Year 2006.

Annual, Sick, and Other Leave

Annual leave is accrued as it is earned; the accrual is reduced as leave is taken. Each year, the balance in the accrued annual leave
account is adjusted to reflect current pay rates. To the extent current or prior year appropriations are not available to fund annual
leave earned but not taken, funding will be obtained from future financing sources. Sick leave and other types of non-vested leave
are expensed as taken.

Federal Employee and Veterans’ Benefits

Agency employees participate in the Civil Service Retirement System (CSRS), a defined benefit plan, or the Federal Employees Re-
tirement System (FERS), a defined benefit and contribution plan. For CSRS employees, NASA makes contributions of 8.51 percent
of pay. For FERS employees, NASA makes contributions of 10.7 percent to the defined benefit plan, contributes 1 percent of pay
to a retirement saving plan (contribution plan), and matches employee contributions up to an additional 4 percent of pay. For FERS
employees, NASA also contributes to employer’s matching share for Social Security.

Statement of Federal Financial Accounting Standards No. 5, “Accounting for Liabilities of the Federal Government,” require Govern-
ment agencies to report the full cost of employee health benefits (FEHB), and the Federal Employees Group Life Insurance (FEGLI)
Programs. NASA used the applicable cost factors and imputed financing sources from the Office of Personnel and Management
Letter For Chief Financial Officers, dated August 16, 2004, in these Financial Statements.

Environmental and Disposal Liabilities

The Agency records a liability for environmental and disposal clean-up costs from NASA operations that resulted in contamination
from waste disposal methods, leaks, spills, and other past activity that created a public health or environmental risk. These liabilities
are assessed by the engineers and finance staff to be probable, reasonably possible or remote. Mid-year determinations are made
of the status of these unfunded liabilities and year end updates are made for any changes up or down that exceed $200,000 and
probable losses for which an estimate of remediation costs can be made are recorded. More details are also found in Note 10.

172 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 2. NON-ENTITY ASSETS


(In Millions of Dollars)

Non-Entity Assets are those assets that are held by NASA but are not available for use by NASA.

2006 2005
Intragovernmental:
Fund Balance with Treasury $ 1 $ —
Accounts Receivable 2 5
Total Intragovernmental $ 3 $ 5

Due from the Public:


Accounts Receivable — 11
Total Non-Entity Assets 3 16
Total Entity Assets 45,307 46,288
Total Assets $ 45,310 $ 46,304

PART 3 • FINANCIALS 173


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 3. FUND BALANCE WITH TREASURY


(In Millions of Dollars)

Fund Balance with Treasury balance is the aggregate amount of all NASA agency location codes (ALC) accounts at Treasury, for
which the agency is authorized to make expenditures and pay liabilities. The fund types are trust, appropriated and other funds.

Trust Funds include balances in Endeavor Teacher Fellowship Trust Fund, National Space Grant Program, Science, Space and Tech-
nology Education Trust Fund, and Gifts and Donations.

Appropriated Funds include balances in Space Flight Capabilities, Science, Aeronautics, and Exploration, Mission Support, Human
Space Flight, Science, Aeronautics, and Technology, and Office of Inspector General.

Other Fund types include Fines, Penalties, and Forfeitures, General Fund Proprietary Interest, Working Capital Fund, Collections of
Receivables from Canceled Appropriations, General Fund Proprietary Receipts, Budget Clearing and Suspense, Unavailable Check
Cancellation, Undistributed Intergovernmental Payment, State and Local Taxes, Other Payroll, and US Employee Allotment Account,
Savings Bonds.

Fund Balances

2006 2005
Trust Funds $ 4 $ 4
Appropriated Funds 9,542 8,169
Working Capital Fund 33 —
Other Fund Types 6 (27)
Total $ 9,585 $ 8,146

The status of Fund Balance with Treasury represents the total fund balance as reflected in the general ledger for unobligated and ob-
ligated balances. Unobligated Balances—Available represent the amount remaining in appropriation accounts that are available for
obligation in future fiscal years. Unobligated Balances—Unavailable represent the amount remaining in appropriation accounts that
can only be used for adjustments to previously recorded obligations. Obligated Balances—Not Yet Disbursed represent the cumula-
tive amount of obligations incurred, including accounts payable and advances from reimbursable customers, for which outlays have
not been made.

Status of Fund Balance with Treasury

2006 2005
Unobligated Balance
Available $ 2,147 $ 2,077
Unavailable 190 161
Obligated Balance Not Yet Disbursed 7,247 5,937
Clearing and Deposit Accounts 1 (29)
Total $ 9,585 $ 8,146

174 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 4. INVESTMENTS
(In Millions of Dollars)

Intragovernmental Securities are marketable federal securities bought and sold on the open market. The Bureau of the Public Debt
issues non-marketable par value Treasury securities. The trust fund and cash balances are invested in Treasury securities, which
are purchased and redeemed at par exclusively through Treasury’s Federal Investment Branch. The effective-interest method was
utilized to amortize discounts and premiums.

As of September 30, 2006

Unamortized
Amortization (Premium) Investments, Market Value
Cost Method Discount Net Disclosure
Intragovernmental Securities:
Non-Marketable: Effective-interest
Par Value $ 14 0.0431-8.875% $ 3 $ 17 $ 17
Total $ 14 $ 3 $ 17 $ 17

As of September 30, 2005

Unamortized
Amortization (Premium) Investments, Market Value
Cost Method Discount Net Disclosure
Intragovernmental Securities:
Non-Marketable: Effective-interest
Par Value $ 14 0.0298-8.875% $ 3 $ 17 $ 17
Total $ 14 $ 3 $ 17 $ 17

PART 3 • FINANCIALS 175


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 5. ACCOUNTS RECEIVABLE, NET


(In Millions of Dollars)

The Accounts Receivable balance includes receivables for reimbursement of research and development costs related to satellites
and launch services. The allowance for uncollectible accounts is based upon evaluation of public accounts receivables, considering
the probability of failure to collect based upon current status, financial and other relevant characteristics of debtors, and the relation-
ship with the debtor.

The Accounts Receivable for September 30, 2006 and 2005, consist of the following:

As of September 30, 2006

Allowance for
Accounts Uncollectible
Receivable Accounts Net Amount Due
Intragovernmental $ 180 $ — $ 180
Public 6 (1) 5
Total $ 186 $ (1) $ 185

As of September 30, 2005

Allowance for
Accounts Uncollectible
Receivable Accounts Net Amount Due
Intragovernmental $ 136 $ — $ 136
Public 61 (1) 60
Total $ 197 $ (1) $ 196

176 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 6. INVENTORY AND RELATED PROPERTY, NET


(In Millions of Dollars)

Operating Materials and Supplies, Held for Use are tangible personal property held by NASA and its contractors to be used for fab-
e
Use are tangible personal property held by NASA for emergencies for which there is no normal recurring demand but that must be
immediately available to preclude delay, which might result in loss, damage or destruction of Government property, danger to life or
welfare of personnel, or substantial financial loss to the Government due to an interruption of operations.

All materials are valued using historical costs, or other valuation methods that approximate historical cost. Excess operating materi-
als and supplies are materials that exceed the demand expected in the normal course of operations, and do not meet manage-
ment’s criteria to be held in reserve for future use. Obsolete operating material and supplies are materials no longer needed due
to changes in technology, laws, customs, or operations. Unserviceable operating materials and supplies are materials damaged
beyond economic repair.

September 30, 2006 September 30, 2005


Inventory and Related Property, Net
Operating Materials and Supplies
Items Held for Use $ 2,687 $ 3,401
Items Held in Reserve for Future Use 3 3
Excess, Obsolete, and Unserviceable (360) (385)
Total $ 2,330 $ 3,019

PART 3 • FINANCIALS 177


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 7. GENERAL PROPERTY, PLANT, AND EQUIPMENT, NET


(In Millions of Dollars)

Theme Assets consist of assets specifically designed for use in a NASA program. Equipment includes special tooling, special test
equipment, and Agency-peculiar property, such as the Space Shuttle and other configurations of spacecraft: engines, satellites,
rockets, and other scientific components unique to NASA space programs. Structures, Facilities, and Leasehold Improvements
include buildings with collateral equipment, and capital improvements, such as airfields, power distribution systems, flood con-
trol, utility systems, roads, and bridges. NASA also has use of certain properties at no cost. These properties include land at the
Kennedy Space Center withdrawn from the public domain, land, and facilities at the Marshall Space Flight Center under a no cost
99-year lease with the U.S. Department of the Army. Work-in-Process (WIP) includes equipment and facilities that are being con-
structed. WIP includes the fabrication of assets that may or may not be capitalized once completed and operational. Projects that
do not meet the capitalization criteria of two years of useful life and in excess of $100,000 are expensed. All other project costs are
capitalized in the year placed into operation.

NASA has International Space Station bartering agreements with international agencies including the European Space Agency and
the National Space Agency of Japan. NASA barters with these space agencies to obtain International Space Station hardware
elements in exchange for providing goods and services such as Space Shuttle transportation and a share of NASA’s International
Space Station utilization rights. The intergovernmental agreements state that the parties will seek to minimize the exchange of funds
in the cooperative program, including the use of barters to provide goods and services. As of September 30, 2006, NASA has
received some assets from these parties in exchange for future services. The fair value is indeterminable; therefore no value was
ascribed to these transactions in accordance with APB No. 29. Accounting for Nonmonetary Transactions. Under all agreements
to date, NASA’s International Space Station Program’s International Partners Office expects that NASA will eventually receive future
NASA-required elements as well with no exchange of funds.

Prior to fiscal year 2006, President Bush announced a new vision for the Nation’s space exploration program. Implementation of this
initiative has required NASA to prioritize and restructure existing programs and missions, and to phase out or eliminate sooner than
originally planned some programs and missions. These programs and missions include the Shuttle, which was originally planned to
continue to the year 2020 but now will retire as soon as assembly of the International Space Station is completed (planned for the
end of this decade). NASA will make an announcement in early FY 2007 regarding the future of planned servicing missions to the
Hubble Space Telescope.

Management is exploring whether a significant portion of PP&E costs should be classified as research and development and there-
fore should be expensed. NASA is considering a change in its accounting policy for Theme Assets to reclassify some Theme Asset
costs previously categorized as General Property, Plant, and Equipment (PP&E) as Research and Development (R&D) expenses. In
the development of the revised policy, NASA followed standards established by the Financial Accounting Standards Board (FASB) in
its Statement of Financial Accounting Standards No. 2, Accounting for Research and Development Costs. NASA believes that this
change will result in financial reporting that is more relevant and timely to the readers of its financial statements. NASA requested
that FASAB clarify the accounting standards the Agency used as the basis for its draft change in accounting policy. NASA antici-
pates a response from FASAB in FY 2007.

178 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 7. GENERAL PROPERTY, PLANT, AND EQUIPMENT, NET (CONTINUED)


(In Millions of Dollars)

September 30, 2006

Depreciation A
Method Useful Life Cost Depreciation Book Value
Government-owned/Government-held
Land $ 114 $ — $ 114
Structures, Facilities and Leasehold Improvements Straight-line 15–40 years 5,497 (4,082) 1,415
Theme Assets Straight-line 2–20 years 43,593 (29,142) 14,451
Equipment Straight-line 5–25 years 2,267 (1,644) 623
Internal Use Software and Development Straight-line 5 years 139 (49) 90
Work-in-Process (WIP)
Work-in-Process 204 — 204
Work-in-Process—Equipment 26 — 26
Assets Under Construction 8,198 — 8,198
Total $ 60,038 $ (34,917) $ 25,121

Government-owned/Contractor-held
Land $ 8 $ — $ 8
Structures, Facilities and Leasehold Improvements Straight-line 15–40 years 859 (704) 155
Equipment Straight-line 5–25 years 12,264 (9,155) 3,109
Work-in-Process 4,800 — 4,800
Total $ 17,931 $ (9,859) $ 8,072

Total Property, Plant, and Equipment $ 77,969 $ (44,776) $ 33,193

PART 3 • FINANCIALS 179


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 7. GENERAL PROPERTY, PLANT, AND EQUIPMENT, NET (CONTINUED)


(In Millions of Dollars)

September 30, 2005

Depreciation A
Method Useful Life Cost Depreciation Book Value
Government-owned/Government-held
Land $ 114 $ — $ 114
Structures, Facilities and Leasehold Improvements Straight-line 15–40 years 5,567 (4,008) 1,559
Theme Assets Straight-line 2–20 years 42,121 (25,699) 16,422
Equipment Straight-line 5–25 years 2,109 (1,483) 626
Capitalized Leases Straight-line 5–25 years 2 (1) 1
Internal Use Software and Development Straight-line 5 years 89 (26) 63
Work-in-Process (WIP)
Work-in-Process 199 — 199
Work-in-Process—Equipment 26 — 26
Assets Under Construction 6,953 — 6,953
Total $ 57,180 $ (31,217) $ 25,963

Government-owned/Contractor-held
Land $ 8 $ — $ 8
Structures, Facilities and Leasehold Improvements Straight-line 15–40 years 831 (628) 203
Equipment Straight-line 5–25 years 10,921 (8,422) 2,499
Work-in-Process 6,253 — 6,253
Total $ 18,013 $ (9,050) $ 8,963

Total Property, Plant, and Equipment $ 75,193 $ (40,267) $ 34,926

180 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 8. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES


(In Millions of Dollars)

Liabilities not covered by budgetary resources are liabilities for which Congressional action is needed before budgetary resources
can be provided. They include certain environmental matters (Note 10), legal claims, pensions and other retirement benefits, work-
ers’ compensation, annual leave, and closed appropriations.

A liability was recorded for workers’ compensation claims related to the Federal Employees’ Compensation Act (FECA), adminis-
tered by U.S. Department of Labor. The FECA provides income and medical cost protection to covered Federal civilian employees
injured on the job, employees who have incurred a work-related occupational disease, and beneficiaries of employees whose death
is attributable to a job-related injury or occupational disease. The FECA Program initially pays valid claims and subsequently seeks
reimbursement from the Federal agencies employing the claimants.

The FECA liability includes the actuarial liability for estimated future costs of death benefits, workers’ compensation, and medical
and miscellaneous costs for approved compensation cases. The present value of these estimates at the end of fiscal year was
calculated by the Department of Labor using a discount rate. This liability does not include the estimated future costs for claims
incurred but not reported or approved as of the end of each year.

Fiscal Year Discount Rate


2006 5.170%
2005 4.528%

NASA has recorded Accounts Payable related to closed appropriations for which there are contractual commitments to pay. These
payables will be funded from appropriations available for obligation at the time a bill is processed, in accordance with Public Law
101-510.

2006 2005
Intragovernmental Liabilities:
Other Liabilities
Workers’ Compensation $ 15 $ 15
Accounts Payable for Closed Appropriations 6 2
Total Intragovernmental $ 21 $ 17

Public Liabilities:
Accounts Payable
Accounts Payable for Closed Appropriations 104 117
Federal Employee and Veterans Benefits
Actuarial FECA Liability 60 62
Environmental and Disposal Liabilities 893 825
Other Liabilities
Unfunded Annual Leave 179 171
Contingent Liabilities 4 5
Total from the Public $ 1,240 $ 1,180

Total Liabilities Not Covered by Budgetary Resources $ 1,261 $ 1,197


Total Liabilities Covered by Budgetary Resources 2,052 2,286
Total Liabilities $ 3,313 $ 3,483

PART 3 • FINANCIALS 181


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 9. OTHER LIABILITIES


(In Millions of Dollars)

In FY 2006, NASA updated the format of this footnote to reflect changes made to the financial statement crosswalks issued by the
Department of Treasury. In prior fiscal years, balances reported as Accounts Payable for Canceled Appropriations were reported on
the Other Liabilities line of the Balance Sheet. This amount is currently reported on the Accounts Payable line of the Balance Sheet.
Additionally, in previous fiscal years Actuarial FECA Liability was reported on the Balance Sheet line Other Liabilities. Currently, this
amount is reported as separate line item on the Balance Sheet.

The format change from the September 30, 2005 published number was made to allow comparative data between 2005 and 2006.

September 30, 2006

Current Non-Current Total


Intragovernmental Liabilities
Advances from Others $ 114 $ — $ 114
Workers’ Compensation 15 — 15
Employer Contributions and Payroll Taxes 11 — 11
Liability for Deposit and Clearing Funds 14 — 14
Custodial Liability 8 — 8
Other Liabilities (5) — (5)
Total Intragovernmental $ 157 $ — $ 157

Liabilities from the Public


Unfunded Annual Leave $ — $ 179 $ 179
Employer Contributions and Payroll Taxes 17 — 17
Accrued Funded Payroll 70 — 70
Advances from Others 87 — 87
Contract Holdbacks 1 — 1
Custodial Liability (17) — (17)
Other Accrued Liabilities 23 — 23
Contingent Liabilities — 4 4
Liability for Deposit and Clearing Funds (14) — (14)
Other Liabilities 5 — 5
Total from the Public $ 172 $ 183 $ 355
Total Other Liabilities $ 329 $ 183 $ 512

182 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 9. OTHER LIABILITIES (CONTINUED)


(In Millions of Dollars)

September 30, 2005 (Restated)

Current Non-Current Total


Intragovernmental Liabilities
Advances from Others $ 99 $ — $ 99
Workers’ Compensation (1) 16 15
Employer Contributions and Payroll Taxes 10 — 10
Liability for Deposit and Clearing Funds — — —
Custodial Liability 5 — 5
Other Liabilities (5) — (5)
Total Intragovernmental $ 108 $ 16 $ 124

Liabilities from the Public


Unfunded Annual Leave $ — $ 171 $ 171
Employer Contributions and Payroll Taxes 6 — 6
Accrued Funded Payroll 71 — 71
Advances from Others 62 — 62
Contract Holdbacks 1 — 1
Custodial Liability 11 — 11
Other Accrued Liabilities 27 — 27
Contingent Liabilities — 5 5
Liability for Deposit and Clearing Funds (20) — (20)
Other Liabilities 6 — 6
Total from the Public $ 164 $ 176 $ 340
Total Other Liabilities $ 272 $ 192 $ 464

PART 3 • FINANCIALS 183


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 10. ENVIRONMENT AND DISPOSAL LIABILITIES


(In Millions of Dollars)

Environmental and Disposal Liabilities represent cleanup costs from NASA operations that resulted in contamination from waste
disposal methods, leaks, spills, and other past activity that created a public health or environmental risk. Federal, State, and local
statutes and regulations require environmental cleanup costs. Some of these statutes are the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act; the Resource Conservation and Recovery Act; the Nuclear Waste Policy Act of 1982; and
State and local laws.

Where up-to-date-site-specific engineering estimates for cleanup are not available, NASA employs commercially available parametric
modeling software to estimate the total cost of cleaning up known contamination at these sites for current and future years. Several
NASA centers have potential remediation issues that are not at this time measurable or estimable.

NASA recorded an unfunded liability in its financial statements to reflect the estimated total cost of environmental cleanup. This es-
timate could change in the future due to identification of additional contamination, inflation, deflation, and a change in technology or
applicable laws and regulations as well as through ordinary liquidation of these liabilities as the cleanup program continues into the
future. The estimate changed from FY 2005 to FY 2006 largely due to better information being available on the extent of contamina-
tion and remediation efforts that would be required. The estimate represents an amount that NASA expects to spend to remediate
currently known contamination, subject to the availability of appropriated funds. Other responsible parties that may be required to
contribute to the remediation funding could share this liability.

FY 2006 FY 2005

Environmental Liabilities $ 893 $ 825


Total Environmental Cleanup $ 893 $ 825

In addition to the specific remediation efforts contemplated in the above estimates, NASA has a number of other potential reme-
diation sites. For certain such sites, remediation costs ranging from $7 million to $65 million have been estimated as reasonably
possible. Beyond acknowledging that such costs would be significant, for such other sites, management is not currently able to
estimate the range of loss, or assess the likelihood that remediation efforts will be required.

184 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 11. CONTINGENT LIABILITIES


(In Millions of Dollars)

No balances have been recorded in the financial statements for contingencies related to proceedings, actions, and claims where
management and legal counsel believe that it is possible but not probable that some costs will be incurred. There were certain
cases that the lawyers reviewed and determined a loss was probable but could not estimate the amount of a future loss.

NASA is a party in various administrative proceedings, court actions (including tort suits), and claims brought by or against it. In the
opinion of management and legal counsel, the ultimate resolution of these proceedings, actions, and claims will not materially affect
the financial position, net cost, changes in net position, budgetary resources, or financing of NASA. Liabilities have been recorded
for $4 million and $5 million for these matters as of September 30, 2006 and September 30, 2005, respectively.

PART 3 • FINANCIALS 185


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 12. INTRAGOVERNMENTAL COST AND EXCHANGE REVENUE


(In Millions of Dollars)

Intragovernmental costs and revenue are exchange transactions made between NASA and another Federal Government report-
ing entity. Costs and revenue with the Public result from transactions between NASA and a non-Federal entity. No comparison is
available to the prior fiscal year due to a change in the data structure and a new method had not been established to format the
information for disclosure for financial reporting. In August of 2004, NASA restructured from six strategic Enterprises to four Mission
Directorates. The transformation did not provide sufficient lead time to develop the reporting structure in the financial management
system for FY 2005.

2006
Science
Intragovernmental Costs $ 536
Public Cost 6,092
Total Science Costs 6,628

Intragovernmental Earned Revenue 350


Public Earned Revenue (2)
Total Science Earned Revenue 348

Total Science Net Cost $ 6,280

Exploration Systems
Intragovernmental Costs $ 214
Public Cost 2,490
Total Exploration Systems Costs 2,704

Intragovernmental Earned Revenue 89


Public Earned Revenue (1)
Total Exploration Systems Earned Revenue 88

Total Exploration Systems Net Cost $ 2,616

Aeronautics Research
Intragovernmental Costs $ 81
Public Cost 1,048
Total Aeronautics Research Costs 1,129

Intragovernmental Earned Revenue 63


Public Earned Revenue 16
Total Aeronautics Research Earned Revenue 79

Total Aeronautics Research Net Cost $ 1,050

186 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 12. INTRAGOVERNMENTAL COST AND EXCHANGE REVENUE (CONTINUED)


(In Millions of Dollars)

2006
Space Operations
Intragovernmental Costs $ 482
Public Cost 7,638
Total Space Operations Costs 8,120

Intragovernmental Earned Revenue 408


Public Earned Revenue 16
Total Space Operations Earned Revenue 424

Total Space Operations Earned Net Cost $ 7,696

Net Cost of Operations $ 17,642

PART 3 • FINANCIALS 187


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 13. UNDELIVERED ORDERS AT THE END OF THE PERIOD


(In Millions of Dollars)

Undelivered Orders at the end of the period total $5,822 million and $4,364 million as of September 30, 2006 and September
30, 2005, respectively. In previous fiscal years this amount was reported as a line item on the Statement of Budgetary Resources.
Based on reporting changes as required by OMB A-136, undelivered orders is no longer reported on the statement. A footnote
disclosure for total undelivered orders is required to comply with requirements of SFFAS 7.

Due to conversion differences in FY 2003, FACTS II unpaid obligations brought forward were adjusted by $39 million in the current
fiscal year. This adjustment is carried through the FY 2006 actual column of the Program and Financing Schedules reported in the
FY 2008 Budget of the U.S. Government. Such information agrees with the related financial records and related data.

NOTE 14. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED


(In Millions of Dollars)

Category A consists of amounts requested to be apportioned for each calendar quarter in the fiscal year. Category B consists of
amounts requested to be apportioned on a basis other than calendar quarters, such as time periods other than quarters, activities,
projects, objects, or a combination thereof.

FY 2006 FY 2005
Direct Obligations:
Category A $ 1 $ 1
Category B 16,767 16,978
Reimbursable Obligations:
Category B 1,005 1,019
Total Obligations Incurred $ 17,773 $ 17,998

NOTE 15. EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE BUDGET OF
THE U.S. GOVERNMENT
(In Millions of Dollars)

NASA compared the amounts reported on the Statement of Budgetary Resources and the actual amounts reported in the Budget of
the United States Government as required by SFFAS No. 7 for FY 2005 and identified no material differences.

The Budget of the United States Government with actual amounts from FY 2006 was not published as of November 15, 2006. The
comparison for FY 2006 will be performed when the Budget of the United States Government is published.

NOTE 16. EXPLANATION OF DIFFERENCES BETWEEN LIABILITIES NOT COVERED BY


BUDGETARY RESOURCES AND COMPONENTS REQUIRING OR GENERATING
RESOURCES IN FUTURE PERIODS
(In Millions of Dollars)

Liabilities Not Covered by Budgetary Resources of $1,261 and $1,197 as of September 30, 2006 and September 30, 2005, respec-
tively, represent NASA’s environmental liability, FECA liability to Department of Labor and employees, contingent liabilities, accounts
payable for closed appropriations and leave earned but not taken (See Note 8, Liabilities Not Covered by Budgetary Resources).
Only a portion of these liabilities will require or generate resources in future periods.

188 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 17. STEWARDSHIP PP&E


(In Millions of Dollars)

Federal agencies are required to classify and report heritage assets, in accordance with the requirements of SFFAS No. 29, Heritage
Assets and Stewardship Land.

Heritage Assets are property, plant, and equipment that possess one or more of the following characteristics: historical or natural
significance; cultural, educational, or aesthetic value; or significant architectural characteristics.

Since the cost of heritage assets is usually not determinable, NASA does not value them or establish minimum value thresholds for
designation of property, plant, or equipment as heritage assets. Additionally, the useful lives of heritage assets are not reasonably
estimable for depreciation purposes. Since the most relevant information about heritage assets is their existence, they are qualified
in terms of physical units, as follows:

2005 Additions Withdrawals 2006

Buildings and Structures 37 — 5 32


Air and Space Displays and Artifacts 492 4 — 496
Art and Miscellaneous Items 1,021 3 — 1,024
Total Heritage Assets 1,550 7 5 1,552

Heritage Assets were generally acquired through construction by NASA or its contractors, and are expected to remain in this cate-
gory, except where there is legal authority for transfer or sale. Heritage assets are generally in fair condition, suitable only for display.

Many of the buildings and structures are designated as National Historic Landmarks. Numerous air and spacecraft and related
components are on display at various locations to enhance public understanding of NASA programs. NASA eliminated their cost
from its property records when they were designated as heritage assets. A portion of the amount reported for deferred maintenance
is for heritage assets.

For more than 30 years, the NASA Art Program has documented America’s major accomplishments in aeronautics and space. Dur-
ing that time, artists have generously contributed their time and talent to record their impressions of the U.S. Aerospace Program in
paintings, drawings, and other media. Not only do these art works provide a historic record of NASA projects, they give the public
a new and fuller understanding of advancements in aerospace. Artists give a special view of NASA through the back door. Some
have witnessed astronauts in training or scientists at work. The art collection, as a whole, depicts a wide range of subjects, from
Space Shuttle launches to aeronautics research, Hubble Space Telescope, and even virtual reality.

Artists commissioned by NASA receive a small honorarium in exchange for donating a minimum of one piece to the NASA archive.
In addition, more works have been donated to the National Air and Space Museum.

In accordance with SFFAS No. 29 the cost of acquisition, improvement, reconstruction, or renovation of heritage assets is expensed
in the period incurred.

In accordance with SFFAS No. 29, heritage assets that are used in day-to-day government operations are considered “multi-use”
heritage assets that are not used for heritage purposes. Such assets are accounted for as general property, plant, and equipment
and are capitalized and depreciated in the same manner as other general property, plant, and equipment. NASA has 45 buildings
and structures that are considered to be multi-use heritage assets. The values of these assets are included in the property, plant,
and equipment values shown in the Financial Statements.

PART 3 • FINANCIALS 189


National Aeronautics and Space Administration
Notes to Financial Statements
(Fiscal Years 2006 and 2005 Are Unaudited)

NOTE 18. GENERAL INFORMATION


(In Millions of Dollars)

During fiscal year 2003, NASA replaced ten disparate accounting systems and over 120 ancillary subsystems that had been in
operation at our Centers for the past two decades, with a commercial off-the-shelf, Agency-wide, Integrated Financial Management
system (SAP Core Financials application module).

Due to data anomalies in the FY 2003 conversion and known system limitations, NASA made a decision not to make prior period
adjustments in fiscal years 2004 and 2005, and accordingly, processed all corrections in current year operations.

During fiscal year 2006, management recorded as current year expenses prior years property transactions for such items as equip-
ment found during routine inventory processes, components of buildings removed and no longer in use, and the correction of
manual processing errors.

In FY 2006, NASA continued to resolve a number of known reconciling items. Some resolutions required processing corrective
transactions in the financial management system that impact line items on the financial statements.

190 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Research and Development Expenses by Business Lines

In August 2004, NASA restructured from six strategic Enterprises to four Business Lines: Science, Exploration Systems, Aeronautics
Research and Space Operations. Each Business Line is comprised of multiple themes and numerous programs comprise each
theme. NASA’s former enterprise structure has been mapped to the new Business Line structure and NASA will report Research
and Development (R&D) expenses using the new structure. Therefore, R&D expenses will now be reported on a Program not
Enterprise basis. This is NASA’s first year reporting under this new structure. A description of NASA’s R&D programs accompanies
this reporting.

To provide the reader with a full picture of NASA expenses, both R&D and non-R&D, NASA has included expenses for non R&D
costs associated with NASA activities such as Education and Outreach, Space Operations Programs. Descriptions for the work
associated with these costs also accompany this reporting.

PART 3 • FINANCIALS 191


National Aeronautics and Space Administration
Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Research and Development Expenses by Business Line by Theme by Program

2006
Science
Solar System Exploration
Discovery $ 127
New Frontiers 107
Technology 1,280
Deep Space Mission Systems (DSMS) 187
Solar System Research 321
Mars Exploration 599
Solar System Exploration Total $ 2,621

The Universe
Navigator $ 87
James Webb Space Telescope 315
Hubble Space Telescope 452
Gamma-ray Large Space Telescope (GLAST) 87
Discovery 114
Explorer 58
Universe Research 225
International Space Science Collaboration 6
Beyond Einstein 8
The Universe Total $ 1,352

Earth–Sun System
Earth Systematic Missions $ 293
Living with a Star 257
Solar Terrestrial Probes 95
Explorer Program 114
Earth System Science Pathfinder 104
Earth–Sun System Multi-Mission Operations 290
Earth–Sun Research 926
Applied Sciences 48
Earth–Sun Technology 82
Earth–Sun System Total $ 2,209
Science Total $ 6,182

192 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development (Continued)
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Research and Development Expenses by Business Line by Theme by Program (Continued)

2006

Exploration Systems
Constellation Systems
Earth Orbit Capability $ 1,421
Constellations Systems Total $ 1,421

Exploration Systems Research & Technology


Advanced Space Technology 3
Technology Maturation 111
Robotic Lunar Exploration 95
Exploration Systems Research & Technology Total $ 209

Prometheus Nuclear Systems & Technology


Advanced Systems and Technology 291
Nuclear Flight Systems 24
Prometheus Systems Research & Technology Total $ 315

Human Systems Research & Technology


Life Support & Habitation 361
Human Health & Performance 136
Human Systems Integration 174
Human Systems Research & Technology Total $ 671
Exploration Systems Total $ 2,616

Aeronautics
Aeronautics Technology
Aviation Safety Program 152
Airspace Systems 144
Fundamental Aeronautics 754
Aeronautics Technology Total $ 1,050
Aeronautics Total $ 1,050

Total Research & Development Expenses $ 9,848

PART 3 • FINANCIALS 193


National Aeronautics and Space Administration
Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development (Continued)
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Non-Research and Development Expenses by Business Line by Theme by Program

2006
Science
Earth–Sun System
Education and Outreach $ 40
SOFIA 58
Science Total $ 98

Space Operations
Space Shuttle 4,245
International Space Station 1,708
Space and Flight Support (SFS) 1,743
Space Operations Total $ 7,696

Total Non-Research & Development Expenses $ 7,794

Total Expenses $ 17,642

194 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development (Continued)
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

NASA makes substantial research and development investments for the benefit of the United States. These amounts are expensed
as incurred in determining the net cost of operations.

NASA’s research and development programs include activities to extend our knowledge of Earth, its space environment, and the
universe, and to invest in new aeronautics and advanced space transportation technologies that support the development and
application of technologies critical to the economic, scientific, and technical competitiveness of the United States.

Investment in research and development refers to those expenses incurred to support the search for new or refined knowledge and
ideas and for the application or use of such knowledge and ideas for the development of new or improved products and processes
with the expectation of maintaining or increasing national economic productive capacity or yielding other future benefits. Research
and development is composed of the following:

Basic Research: Systematic study to gain knowledge or understanding of the fundamental aspects of phenomena and of
observable facts without specific applications toward processes or products in mind;

Applied Research: Systematic study to gain knowledge or understanding necessary for determining the means by which a
recognized and specific need may be met; and

Development: Systematic use of the knowledge and understanding gained from research for the production of useful
materials, devices, systems or methods, including the design and development of prototypes and processes.

Business Line Theme and Program Descriptions

BUSINESS LINE: SCIENCE

Theme: Solar System Exploration


The Solar System Exploration (SSE) Theme seeks to understand how the solar system formed and evolved, and whether there
might be life in the solar system beyond Earth.

Program: Discovery
NASA’s Discovery program represents a breakthrough in the way NASA explores space, with lower-cost, highly focused
planetary science investigations designed to enhance our understanding of the solar system.

Program: New Frontiers


The New Frontiers program, a class of competed medium-sized missions, represents a critical step in the advancement of
the solar system exploration. Proposed science targets for the New Frontiers program include Pluto and the Kuiper Belt,
Jupiter, Venus, and sample returns from Earth’s Moon and a comet nucleus.

Program: Technology
Robotic spacecraft use electrical power for propulsion, data acquisition, and communication to accurately place them-
selves in orbit around and onto the surfaces of bodies about which we may know relatively little. These systems ensure that
they survive and function in hostile and unknown environments, acquire and transmit data throughout their lifetimes, and
sometimes transport samples back to Earth. Since successful completion of these missions is so dependent on power, the
future SSE portfolio of missions will demand advances in power and propulsion systems.

Program: Deep Space Mission System (DSMS)


This program seeks to enable NASA exploration, both human and robotic, of the solar system and beyond by providing
reliable, high performance, and cost effective telecommunications and navigation services to its lunar and deep space
missions.

Program: Solar Systems Research


The Solar System Exploration (SSE) Research Program develops the theoretical tools and laboratory data needed to
analyze flight data, makes possible new and better instruments to fly on future missions, and analyzes the data returned so
that SSE can answer specific questions posed and fit this new knowledge into the overall picture of the solar system.

PART 3 • FINANCIALS 195


National Aeronautics and Space Administration
Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development (Continued)
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Program: Mars Exploration


The Mars Exploration Program has been developed to conduct a rigorous, incremental, discovery-driven exploration of
Mars to determine the planet’s physical, dynamic, and geological characteristics, investigate the Martian climate in the
context of understanding habitability, and investigate whether Mars ever had the potential to develop and harbor any kind
of life.

Theme: The Universe


The Universe Theme supports NASA’s mission to “explore the universe and search for life” by attempting to understand the origin
and evolution of life, searching for evidence of life elsewhere and exploring the universe beyond.

Program: Navigator
The Navigator program consists of a coherent series of increasingly challenging projects, each complementary to the
others and each mission building on the results and capabilities of those that preceded it as NASA searches for habitable
planets outside of the solar system.

Program: The James Webb Space Telescope (JWST)


The program identified by the National Research Council as the top priority for astronomy and physics for the current
decade—is a large, deployable infrared astronomical space-based observatory. The mission is a logical successor to the
HST, extending beyond Hubble’s discoveries into the infrared, where the highly redshifted early universe must be observed,
where cool objects like protostars and protoplanetary disks emit strongly, and where dust obscures shorter wavelengths.

Program: Hubble Space Telescope


Since 1990, the HST has used its pointing precision, powerful optics, and state-of-the-art instruments to explore the vis-
ible, ultraviolet and near-infrared regions of the electromagnetic spectrum. Until such time that Hubble is no longer able to
carry out its scientific mission, the observatory will continue to investigate the formation, structure, and evolution of stars
and galaxies, studying the history of the universe, and providing a space-based research facility for optical astronomy.

Hubble development funding supports a suite of life extension activities, which will maximize science return as the tele-
scope’s capabilities degrade over time. In addition, a robotic spacecraft is under development to be launched on an
expendable launch vehicle, rendezvous with HST, and safely deorbit the observatory at the end of its useful science life.
While this development activity is underway, modification and upkeep of ground operations systems will continue.

Program: Gamma-ray Large Area Space Telescope (GLAST)


A collaboration with the Department of Energy, France, Italy, Sweden, Japan, and Germany, the Gamma-ray Large Area
Space Telescope (GLAST) will improve researchers’ understanding of the structure of the universe, from its earliest begin-
nings to its ultimate fate. By measuring the direction, energy, and arrival time of celestial high-energy gamma rays, GLAST
will map the sky with 50 times the sensitivity of previous missions, with corresponding improvements in resolution and
coverage. Yielding new insights into the sources of high-energy cosmic gamma rays, GLAST will reveal the nature of
astrophysical jets and relativistic flows and study the sources of gamma-ray bursts.

Program: Discovery
The Discovery program gives scientists the opportunity to dig deep into their imaginations and find innovative ways to
unlock the mysteries of the solar system. Discovery is an ongoing program that offers the scientific community the op-
portunity to assemble a team and design exciting, focused science investigations that complement NASA’s larger planetary
science explorations.

Program: Explorer
The Explorer program provides frequent flight opportunities for world-class astrophysics and space physics investigations,
utilizing innovative, streamlined and efficient management approaches to spacecraft development and operations. The
program (including Future Explorers) is managed within the Earth–Sun Theme, but selected projects are managed under
the Universe Theme.

196 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development (Continued)
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Program: Universe Research


The Universe Theme’s Research program strives to answer critical questions about the nature of the universe with a host
of operating missions led by investigators from academia and industry, as well as funding grants for basic research, tech-
nology development, and data analysis from past and current missions. All data collected by missions are archived in data
centers located at universities and NASA centers throughout the country.

Program: International Space Science Collaboration (SSC)


Herschel and Planck, two projects in the International Space Science Collaboration (SSC) Program, are European Space
Agency (ESA)-led missions. Herschel has been designed to unveil a face of the early universe that has remained hidden
until now. Planck will help provide answers to one of the most important sets of questions asked in modern science: how
did the universe begin, how did it evolve to the state we observe today, and how will it continue to evolve in the future?

Program: Beyond Einstein


Beyond Einstein (BE) flagship missions are the Laser Interferometer Space Antenna (LISA) & Constellation-X (Con-X). LISA,
a joint effort NASA/ESA effort, will be the first space-based gravitational wave observatory. LISA will study the death spirals
of stars, colliding black holes, and echoes from the universe all the way back to the Big Bang. Con-X will be a combination
of several separate spacecraft working in unison as 1 giant X-ray telescope far more powerful than any previous. Con-X
will investigate black holes, galaxy formation, the evolution of the universe on the largest scales, the recycling of matter and
energy, and the nature of “dark matter.”

Theme: Earth–Sun System


NASA uses the unique vantage point of space to understand and explore Earth and the Sun. The relationship between the Sun and
the Earth is at the heart of a complex, dynamic system that researchers do not yet fully understand. The Earth–Sun system, like the
human body, is comprised of diverse components that interact in complex ways, requiring unique capabilities for characterizing,
understanding, and predicting change. Therefore, researchers need to understand the Sun, the heliosphere, and Earth’s atmo-
sphere, lithosphere, hydrosphere, cryosphere, and biosphere as a single connected system.

Program: Earth Systematic Missions


Earth Systematic Missions provide Earth observing satellites that contribute to the provision of long-term environmental
data sets that can be used to study the evolution of the Earth system on a range of temporal scales. This information is
used to analyze, model, and improve understanding of the Earth system.

Program: Living with a Star


The Living With a Star (LWS) program seeks to understand how and why the Sun varies, how Earth and other planets
respond, and how the variability and response affect humanity. Achieving these goals will enable a reliable space weather
prediction so undesirable space weather effects can be accommodated or mitigated before they occur.

Program: Solar Terrestrial Probes (STP)


The primary goal of the Solar Terrestrial Probes (STP) Program is to understand how the Sun, heliosphere, and planetary
environments are connected in a single system.

Program: Explorer
The mission of the Explorer program is to provide frequent flight opportunities for world-class astrophysics and space
physics investigations, utilizing innovative, streamlined and efficient management approaches to spacecraft development
and operations.

Program: Earth System Science Pathfinder (ESSP)


This program addresses unique, specific, highly-focused mission requirements in Earth science research. ESSP includes a
series of relatively low to moderate cost, small to medium sized, competitively selected, principal investigator led missions
that are built, tested, and launched in a short time interval. These missions are capable of supporting a variety of scientific
objectives related to Earth science, involving the atmosphere, oceans, land surface, polar ice regions and solid earth.

PART 3 • FINANCIALS 197


National Aeronautics and Space Administration
Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development (Continued)
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Program: Earth–Sun System Multi-Mission Operations


This program acquires, preserves, and delivers the observation data for the Science Mission Directorate/Earth–Sun System
scientific focus areas in conformance with national science objectives.

Program: Earth–Sun System Division (ESSD)


The program observations and research aim to improve our capability for predicting weather, climate and natural hazards,
including space weather. The focus of NASA’s efforts in ESSD is the development and demonstration of space-based
measurements, providing information about the Earth–Sun system not available by other means.

Program: Applied Sciences


The Applied Sciences program bridges the gap between scientific discoveries and practical applications that benefit soci-
ety through partnerships that integrate the observations and predictions resulting from NASA Earth–Sun system science
into solutions.

Program: Earth–Sun System Education and Outreach


The program uses NASA’s results from studying the Earth system and the Sun to enhance the teaching and learning of
Earth, space, and environmental sciences through partnerships with educational institutions and organizations.

Program: Earth–Sun Technology


NASA’s ESSD is dedicated to understanding the total Earth–Sun system and the effects of natural and human-induced
changes on the global environment.

BUSINESS LINE: EXPLORATION SYSTEMS

Theme: Constellation Systems


Through the Constellation Systems Theme NASA will develop, demonstrate, and deploy the collection of systems that will enable
sustained human and robotic exploration of the Moon, Mars, and beyond.

Program: Earth Orbit Capability


The Earth Orbit Capability program is responsible for developing, demonstrating, and deploying the capability for crew
transportation to Earth orbit.

Theme: Exploration Systems Research and Technology


The Exploration Systems Research and Technology (ESR&T) Theme represents NASA’s commitment to investing in the technologies
and capabilities that will make the national vision for space exploration possible.

Program: Advanced Space Technology


The Advanced Space Technology program develops new technologies that will enable NASA to conduct new human and
robotic exploration missions, gather new types of scientific data, and reduce mission risk and cost.

Program: Technology Maturation


The Technology Maturation program develops and validates the most promising advanced space technology concepts and
matures them to the level of demonstration and space flight validation, to enable safe, affordable, effective and sustainable
human-robotic exploration.

Program: Robotic Lunar Exploration (RLE)


This program will undertake lunar exploration activities that enable sustained human and robotic exploration of the Moon.
These activities will further science, and develop and test new approaches, technologies, and systems, including use of
lunar and other space resources, to support sustained human space exploration.

Theme: Prometheus Nuclear Systems and Technology


Prometheus Nuclear Systems and Technology represents NASA’s effort to develop an advanced technology capability for more
complex operations and exploration of the solar system.

198 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development (Continued)
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Program: Advanced Systems and Technology


The Advanced Systems and Technology program develops and demonstrates advanced nuclear technologies and engi-
neered systems. This technology development will be necessary to support NASA’s goal of more distant, more ambitious,
and longer duration human and robotic exploration of Mars and other destinations.

Program: Nuclear Flight Systems


The Nuclear Flight Systems program continues NASA’s development of nuclear reactor power and associated spacecraft
systems to enhance NASA’s abilities to conduct robotic exploration and science operations.

Theme: Human Systems Research and Technology


This Theme focuses on ensuring the health, safety, and security of humans through the course of solar system exploration.

Program: Life Support and Habitation


The Life Support and Habitation program focuses on enabling human exploration beyond low Earth orbit by developing
technologies to support human activity in and beyond low Earth orbit.

Program: Human Health and Performance


The Human Health and Performance program delivers research, technology, knowledge, and tools that will enable
human space exploration. Specifically, the Human Health and Performance program will guide the development of various
countermeasures to aid astronauts counteract any deleterious effects of long-duration missions in the space environment;
develop tools and techniques to improve medical care delivery to space exploration crews; increase our biomedical knowl-
edge and improve understanding of radiation effects to reduce the uncertainty in estimating space radiation health risks to
human crews; and, acquire new information in exploration biology, which will identify and define the scope of problems that
will face future human space explorers during long periods of exposure to space.

Program: Human Systems Integration


The Human-Systems Integration program conducts research and technology development driven by Agency needs for
crew health; design of human spacecraft, space suits, and habitats; efficient crew operations; medical operations; and
technology development to enable safe and productive human space exploration.

BUSINESS LINE: AERONAUTICS RESEARCH

Theme: Aeronautics Technology (AT)


Aeronautics Technology conducts high-quality, innovative research that will lead to revolutionary concepts, technologies, and capa-
bilities that enable radical change to both the airspace system and the aircraft that fly within it.

Program: Aviation Safety


The Aviation Safety program builds upon the unique safety-related research capabilities of NASA to develop tools, meth-
ods, and technologies that will improve the intrinsic safety attributes of current and future aircraft, and to overcome aircraft
safety technological barriers that would otherwise constrain the full realization of Next Generation Air Transportation System
(NGATS).

Program: Airspace Systems


The Airspace Systems Program conducts cutting-edge air traffic management research that will enable the NGATS. In
partnership with the Joint Planning and Development Office (JPDO), the ASP will help develop the concepts, capabilities
and technologies that will lead to the significant enhancements in capacity, efficiency and flexibility needed to meet the
Nation’s airspace and airportal requirements for decades to come.

PART 3 • FINANCIALS 199


National Aeronautics and Space Administration
Required Supplementary Stewardship Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Stewardship Investments: Research and Development (Continued)
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Program: Fundamental Aeronautics


The Fundamental Aeronautics program will conduct cutting-edge research that will enable the design of vehicles that fly
through any atmosphere at any speed. Because aircraft of the future will need to address multiple and often conflicting
design challenges such as noise, emissions, and performance, a key focus will be the development of physics-based,
multidisciplinary design, analysis, and optimization (MDAO) tools. Such tools will make it possible to evaluate radically new
vehicle designs and to assess, with known uncertainties, the potential impact of innovative concepts and technologies on a
vehicle’s overall performance.

NON-R&D Programs

BUSINESS LINE: SCIENCE

Theme: Earth–Sun System

Program: Education and Outreach


The program uses NASA’s results from studying the Earth system and the Sun to enhance the teaching and learning of
Earth, space, and environmental sciences through partnerships with educational institutions and organizations.

Program: SOFIA
Stratospheric Observatory for Infrared Astronomy (SOFIA) is a telescope mounted onto a specially designed Boeing 747.
The project has considered the use of SOFIA as a platform for pursuits other than its primary mission of astronomy/astro-
physics. According to SOFIA’s Project Manager, a concept has been developed for SOFIA to be used for Earth Science
investigations, simultaneously with SOFIA’s prime mission. Also, additional in depth studies include using SOFIA as an
experimental platform to test high bandwidth communications with Mars spacecraft or as a testbed for high-bandwidth
earth communications.

BUSINESS LINE: SPACE OPERATIONS

Theme: Space Shuttle


The Space Shuttle is currently the only launch capability owned by the United States that enables human access to space, and the
only vehicle that can support the assembly of the International Space Station (ISS). NASA will phase-out the Space Shuttle in 2010
when its role in ISS assembly is complete.

Theme: International Space Station


This Theme supports the construction and operations of a research facility in low Earth orbit as NASA’s first step in achieving the
Vision for Space Exploration. The ISS provides a unique, continuously operating capability to develop medical countermeasures for
long-term human space travel: develop and test technologies and engineering solutions in support of exploration; and provide ongo-
ing practical experience in living and working in space. It also supports a variety of pure and applied research for the U.S. and its
International Partners. ISS assembly will be completed by the end of the decade. NASA is examining configurations for the Space
Station that meet the needs of both the new space exploration vision and our international partners using as few Shuttle flights as
possible. A key element of the ISS program is the crew and cargo services project, which will purchase services for cargo and crew
transport using existing and emerging capabilities.

Theme: Space and Flight Support


This theme encompasses Space Communications, Launch Services, Rocket Propulsion Testing, and Crew Health and Safety.
Space Communications consists of (1) the Tracking and Data Relay Satellite System (TDRSS), which supports activities such as
the Space Shuttle, ISS, Expendable Launch Vehicles, and research aircraft, and (2) the NASA Integrated Services Network, which
provides telecommunications services at facilities, such as flight support networks, mission control centers and science facilities, and
administrative communications networks for NASA Centers. The Launch Services program focuses on meeting the Agency’s launch
and payload processing requirements by assuring safe and cost-effective access to space via the Space Shuttle and expendable
launch vehicles.

200 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Required Supplementary Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Combined Schedule of Budgetary Resources
For the Fiscal Year Ended September 30, 2006
(In Millions of Dollars)

Exploration, Office of
Science, and Exploration Inspector
Aeronautics Capabilities General Other Total
Budgetary Resources
Unobligated Balance, Brought Forward, October 1 1,245 840 4 152 2,241
Recoveries of Prior Year Obligations 183 105 — 80 368

Budget Authority:
Appropriation 9,761 7,048 32 2 16,843
Spending Authority from Offsetting Collections
Earned
Collected 598 360 — 31 989
Change in Receivable from Federal Sources 11 35 — (5) 41
Change in Unfilled Orders
Advance Received 36 8 — 13 57
Without Advance from Federal Sources (129) (81) — 2 (208)
Subtotal 10,277 7,370 32 43 17,722

Nonexpenditure Transfers, Net:


Actual Transfers, Budget Authority 85 (59) — — 26

Permanently Not Available


Cancellations of Expired and No-year Accounts — — — (37) (37)
Enacted Reductions (125) (85) — — (210)
Total Budgetary Resources $ 11,665 $ 8,171 $ 36 $ 238 $ 20,110

Status of Budgetary Resources


Obligations Incurred:
Direct: 9,630 7,047 32 59 16,768
Reimbursable: 578 384 — 43 1,005
Total Obligations Incurred 10,208 7,431 32 102 17,773

Unobligated Balance:
Apportioned 1,403 707 — 33 2,143
Exempt from Apportionment — — — 4 4
Total Unobligated Balances 1,403 707 — 37 2,147
Unobligated Balance Not Available 54 33 4 99 190
Total Status of Budgetary Resources $ 11,665 $ 8,171 $ 36 $ 238 $ 20,110

PART 3 • FINANCIALS 201


National Aeronautics and Space Administration
Required Supplementary Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Combined Schedule of Budgetary Resources
For the Fiscal Year Ended September 30, 2006 (Continued)
(In Millions of Dollars)

Exploration, Office of
Science, and Exploration Inspector
Aeronautics Capabilities General Other Total
Change in Obligated Balance
Obligated Balances, Net, October 1 3,454 1,950 6 563 5,973
Obligations Incurred, Net 10,209 7,431 32 101 17,773
Less: Gross Outlays 8,486 7,484 33 256 16,259

Less: Recoveries of Prior Year Unpaid Obligations 183 105 — 80 368


Change in Uncollected Customer Payments from Federal Sources 118 46 — 3 167

Obligated Balance, Net, End of Period


Unpaid Obligations 5,343 1,984 5 339 7,671
Less: Uncollected Customer Payments from Federal Sources 231 146 — 8 385
Total, Unpaid Obligated Balance, Net, End of Period $ 5,112 $ 1,838 $ 5 $ 331 $ 7,286

Outlays
Net Outlays
Gross Outlays 8,486 7,484 33 256 16,259
Less: Offsetting Collections 633 367 — 45 1,045
Subtotal 7,853 7,117 33 211 15,214
Less: Distributed Offsetting Receipts — — — 8 8
Net Outlays $ 7,853 $ 7,117 $ 33 $ 203 $ 15,206

202 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Required Supplementary Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Combined Schedule of Budgetary Resources
For the Fiscal Year Ended September 30, 2005
(In Millions of Dollars)

Exploration, Office of
Science, and Exploration Inspector
Aeronautics Capabilities General Other Total
Budgetary Resources
Unobligated Balance, Brought Forward, October 1 1,203 560 — 1,338 3,101
Recoveries of Prior Year Obligations — — — 10 10

Budget Authority:
Appropriation 7,743 8,552 32 (12) 16,315
Spending Authority from Offsetting Collections
Earned
Collected 476 338 — 37 851
Change in Receivable from Federal Sources 25 8 — (12) 21
Change in Unfilled Orders
Advance Received — 15 — (5) 10
Without Advance from Federal Sources 26 107 — (16) 117
Subtotal 8,270 9,020 32 (8) 17,314

Nonexpenditure Transfers, Net:


Actual Transfers, Budget Authority 197 (197) — — —

Permanently Not Available


Cancellations of Expired and No-year Accounts — — — (60) (60)
Enacted Reductions (62) (67) — — (129)
Total Budgetary Resources $ 9,608 $ 9,316 $ 32 $ 1,280 $ 20,236

Status of Budgetary Resources


Obligations Incurred:
Direct: 7,817 8,088 29 1,045 16,979
Reimbursable: 546 388 — 85 1,019
Total Obligations Incurred 8,363 8,476 29 1,130 17,998

Unobligated Balance:
Apportioned 1,270 771 2 30 2,073
Exempt from Apportionment — — — 4 4
Total Unobligated Balances 1,270 771 2 34 2,077
Unobligated Balance Not Available (25) 69 1 116 161
Total Status of Budgetary Resources $ 9,608 $ 9,316 $ 32 $ 1,280 $ 20,236

PART 3 • FINANCIALS 203


National Aeronautics and Space Administration
Required Supplementary Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Combined Schedule of Budgetary Resources
For the Fiscal Year Ended September 30, 2005, Continued
(In Millions of Dollars)

Exploration, Office of
Science, and Exploration Inspector
Aeronautics Capabilities General Other Total
Change in Obligated Balance
Obligated Balances, Net, October 1 2,567 1,687 4 301 4,559
Obligations Incurred, Net 8,363 8,476 29 1,130 17,998
Less: Gross Outlays 7,433 8,095 28 916 16,472

Less: Recoveries of Prior Year Unpaid Obligations — — — 10 10


Change in Uncollected Customer Payments from Federal Sources (51) (115) — 28 (138)

Obligated Balance, Net, End of Period


Unpaid Obligations 3,795 2,145 5 543 6,488
Less: Uncollected Customer Payments from Federal Sources 349 192 — 10 551
Total, Unpaid Obligated Balance, Net, End of Period $ 3,446 $ 1,953 $ 5 $ 533 $ 5,937

Outlays
Net Outlays:
Gross Outlays 7,433 8,095 28 916 16,472
Less: Offsetting Collections 476 352 — 33 861
Subtotal 6,957 7,743 28 883 15,611
Less: Distributed Offsetting Receipts — — — — —
Net Outlays $ 6,957 $ 7,743 $ 28 $ 883 $ 15,611

204 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

National Aeronautics and Space Administration


Required Supplementary Information
(Fiscal Years 2006 and 2005 Are Unaudited)
Deferred Maintenance
For the Fiscal Year Ended September 30, 2006

NASA has deferred maintenance only on its facilities, including structures. There is no significant deferred maintenance on other
physical property, such as land, equipment, theme assets, leasehold improvements, or assets under capital lease. Contractor-held
property is subject to the same considerations.

NASA developed a Deferred Maintenance parametric estimating method (DM method) in order to conduct a consistent condition
assessment of its facilities. This method was developed to measure NASA’s current real property asset condition and to document
real property deterioration. The DM method produces both a parametric cost estimate of deferred maintenance, and a Facility
Condition Index. Both measures are indicators of the overall condition of NASA’s facility assets. The DM method is designed for ap-
plication to a large population of facilities; results are not necessarily applicable for individual facilities or small populations of facilities.
Under this methodology, NASA defines acceptable operating conditions in accordance with standards comparable to those used in
private industry, including the aerospace industry.

While there have been no significant changes in our deferred maintenance parametric estimating method this year, the analysis of
the changes in FCI data between FY05 and FY06 for these assets indicates that across assessment teams, the FCI is consistent
and compatible with previous years’ DM assessments. Most notably, a slight downward trend in overall FCI is evident, as would
be expected due to system degradation over time, while a majority of assets showed no change in FCI. Finally, the majority of the
assets whose FCI changed more than three standard deviations can be explained by deterioration and system adjustments-both of
which are reasonable explanations for large variations in individual FCI ratings from year to year.

Deferred maintenance related to heritage assets is included in the deferred maintenance for general facilities. Maintenance is not
deferred on active assets that require immediate repair to restore them to safe working condition and have an Office of Safety and
Mission Assurance Risk Assessment Classification Code 1 (see NASA STD 8719.7).

Restated
2006 2005
Deferred Maintenance Method
Facility Condition Index (FCI) 3.6 3.7
Target Facility Condition Index 4.3 4.3
Backing of Maintenance/Repair Est.
(Active and Inactive Facilities) $2.05 B $1.85 B

PART 3 • FINANCIALS 205


Office of Inspector General Letter on Audit of
NASA’s Financial Statements

206 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

PART 3 • FINANCIALS 207


Report of the Independent Auditors

208 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Financials

PART 3 • FINANCIALS 209


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Financials

PART 3 • FINANCIALS 211


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Financials

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Financials

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Financials

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Financials

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Financials

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Financials

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Financials

PART 3 • FINANCIALS 229


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Financials

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232 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Financials

PART 3 • FINANCIALS 233


234 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Financials

Chief Financial Officer’s Response to the Audit Report of


the Independent Auditors

PART 3 • FINANCIALS 235


236 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT
Appendices
Previous page: Six hundred and fifty light-years away in the constellation Aquarius, a dead star about the size of Earth
called the Helix Nebula is refusing to fade away peacefully. In death, it is spewing out massive amounts of hot gas and
intense ultraviolet radiation, creating a spectacular object called a “planetary nebula.” In this false-color image, NASA’s
Hubble and Spitzer Space Telescopes have teamed up to capture the complex structure of the object in unprecedented
detail.
The dead star, called a white dwarf, can be seen at the center of the image as a white dot. The intense ultraviolet radiation
being released by the white dwarf is heating and destabilizing the molecules in its surrounding environment. Very hot gases
(blue) are in the center. As gases move away from the center, they transition from hot (yellow) to warm (red). A striking
feature of the Helix is its collection of thousands of filamentary structures, or strands of gas. In this image, the filaments can
be seen under the transparent blue gas as red lines radiating out from the center. Astronomers believe that the molecules
in these filaments are able to stay cooler and more stable because dense clumps of materials are shielding them from
ultraviolet radiation. (NASA/JPL–Caltech/ESA/J. Hora, Harvard–Smithsonian CfA/C.R. O’Dell, Vanderbilt Univ.)
Above: These images compare a visible-light image (inset) taken by the California Institute of Technology’s Digitized Sky
Survey with an infrared image taken by NASA’s Spitzer Space Telescope. While the visible-light view shows hints of dusty
pillars, the infrared view, dubbed “Mountains of Creation,” reveals towering pillars of dust aglow with the light of embryonic
stars (shown in white and yellow). The added detail in the Spitzer image reveals a dynamic region in the process of evolving
and creating new stellar life. (Inset: DSS; Spitzer image: NASA/JPL–Caltech/L. Allen, Harvard–Smithsonian CfA)

238 NASA FY 2006 PERFORMANCE AND ACCOUNTABILITY REPORT


Appendix A:
Audit Follow-up Actions

The Inspector General Act Amendments


The Inspector General Act of 1978 (as amended), requires that the head of each federal agency make management
decisions on all audit recommendations issued by the Office of Inspector General (OIG) within a maximum of six months
after the issuance of an audit report. The Act further requires that the head of each federal agency complete final action
on each management decision required with regard to a recommendation in an OIG report within 12 months after issu-
ance of a report.

The Inspector General Act Amendments of 1988 (P.L. 100-504), require that federal agency heads report on the status of
management decisions and final management action with regard to audit reports issued by the OIG. Under the Reports
Consolidation Act (RCA) of 2000, NASA consolidates and annualizes all relevant information on final management deci-
sions and final management action for inclusion in the annual Performance and Accountability Report (PAR). Following
is NASA’s submission in compliance with these requirements.

Report on Audit Follow-up


NASA management is committed to ensuring the timely resolution (management decision) and implementation of OIG
audit recommendations and believes that audit follow-up is essential to improving the efficiency and effectiveness of
NASA programs, projects, and operations. Therefore, NASA has implemented a comprehensive program of audit liaison,
resolution, and follow-up to assure that OIG audit recommendations are resolved and implemented promptly.

NASA uses the Corrective Action Tracking System version 2.0 (CATS II), as the Agency’s primary database for monitoring
the status of OIG audit recommendations. CATS II is a Web-based application developed and managed by NASA.

NASA’s program of audit follow-up is a joint effort between NASA management and the NASA OIG. Periodic reconcilia-
tions between the OIG’s Office of Audits Central Information System (OACIS) and NASA’s CATS system assure complete
and accurate status reporting of open OIG audit reports and related recommendations.

During FY 2006, the Office of Infrastructure and Administration, Management Systems Division partnered with the NASA
Office of Inspector General, Quality Assurance Directorate on a joint effort to conduct post-closure follow-up reviews
to assess the efficiency and effectiveness of agency audit follow-up processes and to identify trends and/or systemic
deficiencies. Reviewers derived their objectives from requirements outlined in the Office of Management and Budget’s
(OMB) Circular A-50, “Audit Follow-up,” dated September 29, 1982. The scope of the work performed was limited to
NASA OIG audit recommendations resolved and closed during the period January 1, 2000 through December 31, 2005.
On September 11, 2006, the Management Systems Division issued its initial report on post-closure follow-up. The report
concluded that while the work performed by the Management Systems Division did not support a conclusion as to the
overall effectiveness and efficiency of NASA’s audit follow-up system in its entirety, the system did assure the efficient,
prompt, and proper resolution and implementation of corrective action on the recommendation included in the review.
Furthermore, there was no indication of recurring deficiencies or systemic trends relating to the subject matter reviewed
(NASA’s foreign national management system).

Appendices A-1
Reports Pending Final Management Decision Six Months
or More After Issuance of a Final Report
As of September 30, 2006, there were no audit recommendations issued by the NASA Office of Inspector General for
which a final management decision had not been made within six months of issuance of a final audit report.

Reports Pending Final Management Action One Year or


More After Issuance of a Management Decision
As of September 30, 2006, the NASA OIG has issued a total of 13 audit reports containing 53 audit recommendations
on which final management decisions have been made, but final management action is still pending. For comparative
purposes, as of September 30, 2005, the NASA OIG issued 15 audit reports containing 40 audit recommendations on
which final management decisions were made, but final management action was pending.

Delays in implementation of final management action stem from the development and implementation of NASA policy or
procedural requirements or implementation of system changes. Management continues to address the recommenda-
tions put forth by the OIG, and the Agency is actively implementing those recommendations as expeditiously as pos-
sible.

OIG Audit and Inspection Reports Pending Final Management Action One Year or More after Issuance of a
Management Decision
(As of September 30, 2006)
Report No./ No. Recommendations
Report Date Report Title Open Closed
G00017 / 10-22-2001 Internet Based Space Craft Commanding 1 3
IGFS04 / 1-23-2003 Fiscal Year 2002 Financial Statement Audit Report (PAR) 1 9
IGFS03 / 01-18-2004 Fiscal Year 2003 Management Letter Comments (Financial) 2 6
IGFS02 / 01-28-2004 Fiscal Year 2003 Management Letter Comments (Information Technology) 7 64
IGFS01 / 01-28-2004 Audit of NASA’s Fiscal Year 2003 Financial Statements (PAR) 5 13
IG-04-025 / 09-07-2004 NASA’s Implementation of the Mission Critical Space System PRP 3 3
FSMEMO04 / 10-29-2004 Fiscal Year 2004 NASA Financial Statement Audit (Information 7 55
Technology)
FSMEMO02 / 10-29-2004 Fiscal Year 2004 NASA Financial Statement Audit (Environmental Liability 18 0
Comments)
FSMEMO01 / 10-29-2004 Fiscal Year 2004 NASA Financial Statement Audit (PAR) 4 8
IG-05-011 / 03-28-2005 Audit of Information Assurance Controls in the Flight Project Ground Data 1 24
System at JPL
IG-05-013 / 03-30-2005 Review of IT Security Structure at NASA Centers 1 1
IG-05-016 / 05-12-2005 Audit of NASA’s Information Technology Vulnerability Assessment Process 1 3
IG-05-025 / 09-16-2005 NASA’s Performance Measure Data Under the Federal Information 2 3
Security Management Act (FISMA)
13 Totals 53 192

A-2 NASA FY 2006 Performance and Accountability Report


Appendix A: Audit Follow-up Actions

Disallowed Costs and Funds Put to Better Use


October 1, 2005 - September 30, 2006

Category Disallowed Costs Funds Put to Better Use

Number Value Number Value


A.) Audit reports with management decisions but without final action
251 $0 0 $0
completed at the beginning of the reporting period.
B.) Audit reports on which management decisions were made dur-
28 $0 1 $24,000
ing the reporting period.
C.) Total audit reports pending final action during the reporting pe-
53 $0 1 $24,000
riod (A + B).
D.) Audit reports on which final action was taken during the reporting
period:
1. Recoveries:
(a) Offsets 0 $0 0 $0
(b) Collections 0 $0 0 $0
(c) Property 0 $0 0 $0
(d) Other 18 $0 0 $0
2. Write-offs. 0 $0 0 $0
3. Value of recommendations implemented. 0 $0 1 $24,000
4. Value of recommendations management decided should/ 0 $0 0 $0
could not be implemented.
E.) Audit reports pending final action at the end of the reporting pe-
35 $0 1 $0
riod (C - D).

1. Restated beginning balance of audit reports with management decisions made, but without final action completed.

Appendices A-3
A-4 NASA FY 2006 Performance and Accountability Report
Appendix B: FY 2005 Performance
Improvement Plan Follow-up

NASA is a research and development agency, therefore projects usually span years or even decades, and it is often
difficult to assess annual progress. NASA reviews deficiencies reported in the annual performance plan and tracks
the progress of remedial actions taken to correct these shortcomings.

The following table presents FY 2005 Annual Performance Goals (APGs) that were rated Yellow or Red, the plans
and schedules to correct the goal as presented in the FY 2005 Performance Improvement Plan, and the results of
FY 2006 follow-up actions. Further information on on-going projects is included in Part 2: Detailed Performance
Data.

Explanation/
Objective

Perfor- description of where a


Rating

mance performance goal Why the goal Plans and schedules


Measure Description was not met was not met for achieving the goal
2 APG Successfully complete NASA postponed the NASA decided to delay in order The PMSR currently is
5MEP4 the Preliminary Mis- Preliminary Mission System to complete independent cost scheduled for December
Yellow

sion System Review Review (PMSR) for the 2009 estimates prior to the review. The 2005, with no impact to
(PMSR) for the 2009 Mars Science Laboratory. mission schedule allowed for this the mission launch date.
Mars Science Labora- delay with no impact.
tory (MSL) Mission.
FY 2006 Follow-up
NASA completed the Preliminary Mission System Review (PMSR) on December 7-9, 2005. The delay did not impact the mission launch date.
2 APG Successfully dem- The external expert review The external expert review deter- As noted by the external
5MEP11 onstrate progress determined that NASA did mined that NASA did not demon- review, the Mars Science
in investigating the not demonstrate sufficient strate sufficient progress due to Laboratory, scheduled
character and extent progress in investigating the a lack of currently operating flight for launch in 2009, will
Yellow

of prebiotic chemistry character and extent of pre- missions designed to address this address this Outcome.
on Mars. Progress biotic chemistry on Mars. Outcome.
towards achieving out-
comes will be validated
by external review.
FY 2006 Follow-up
As noted in the external review, the Mars Science Laboratory will address this Outcome. Launch is scheduled for fall 2009.
APG Successfully dem- The external expert review The external expert review deter- As noted by the external
5MEP14 onstrate progress determined that NASA did mined that NASA did not make review, the Mars Re-
in inventorying and not demonstrate sufficient sufficient progress due to a lack of connaissance Or-
characterizing Martian progress toward achieving currently operating flight missions biter, launched in August
resources of poten- this APG. designed to address this Outcome. 2005, will address this
Yellow

2 tial benefit to human Outcome.


exploration of Mars.
Progress towards
achieving outcomes
will be validated by
external review.
FY 2006 Follow-up
As noted in the external review, Mars Reconnaissance Orbiter (MRO) will address this science Outcome. NASA placed MRO in orbit during FY
2006 and the spacecraft is returning high resolution, low-altitude images to Earth.

Appendices B-1
Objective Explanation/
Perfor- description of where a

Rating
mance performance goal Why the goal Plans and schedules
Measure Description was not met was not met for achieving the goal
2 APG Successfully dem- The external expert review The external expert review deter- NASA has included Ve-
5SSE9 onstrate progress in determined that NASA did mined that NASA did not make suf- nus investigations as an
understanding why not make sufficient progress ficient progress due to the lack of explicit target in the New
the terrestrial planets toward achieving this APG. flight missions planned to address Frontiers Program.

Yellow
are so different from this Outcome in general and Venus
one another. Progress in particular.
towards achieving out-
comes will be validated
by external review.
FY 2006 Follow-up
NASA-funded investigators are participating in the European Space Agency’s Venus Express mission. Venus Express, launched in Novem-
ber 2005, arrived at Venus in April and is currently orbiting the planet, studying its atmosphere in great detail. In addition, under the Discovery
Program 2006 Announcement of Opportunity, NASA selected for concept study a return to Venus mission. “Vesper”, the Venus Chemistry and
Dynamics Orbiter, proposes to significantly advance our understanding of the atmospheric composition and dynamics of Venus, especially its
photochemistry. Successful completion of the Phase A concept study would allow continuation into a Phase B full design effort.
4 APG Demonstrate James NASA has completed only NASA tested the advanced mirror NASA will test the pro-
5ASO4 Webb Space partially testing of JWST system demonstrator (ASMD) mir- totype and flight spare
Telescope (JWST) pri- primary mirror technology in ror to operating temperature, but engineering development
Yellow

mary mirror technology a flight-like environment. not to flight-like mechanical loads. units mirror segment to
readiness by testing a all flight conditions by
prototype in a flight-like summer 2006, bringing it
environment. to Technology Readiness
Level 6.
FY 2006 Follow-up
NASA completed testing of the JWST primary mirror by July 2006.
4 Outcome Tace the chemical See 5ASO1 below. See 5ASO1 below. See 5ASO1 below.
4.7 pathwaysby which
Yellow

simple molecules and


dust evolve into the
organic molecules
important for life.
4 APG Deliver the SOFIA Air- SOFIA Airborne Observatory The SOFIA mission has experi- Delivery will occur in
5ASO1 borne Observatory to has not been delivered to enced significant delays over the FY 2007.
Ames Research Center Ames for final testing. last several years from a variety of
for final testing. causes; the delay to completing the
Red

FY 2005 APG represents the effect


of delays in prior years, acknowl-
edged and explained in prior year’s
reports.
FY 2006 Follow-up
NASA restructured the program at Dryden Flight Research Center (DFRC) providing direct management of the SOFIA airborne system develop-
ment and flight testing. DFRC will receive the system in FY 2007.
5 APG Successfully dem- The external expert review Progress toward achieving this A Mishap Investigation
5SEU8 onstrate progress determined that progress APG was affected by the loss of the Board is assessing the
in testing Einstein’s toward achieving this APG XRS-2 instrument on the Astro-E2/ causes of the failure.
theory of gravity and was significantly affected Suzaku mission. NASA may try to obtain
Yellow

mapping space–time by the loss of the XRS-2 the XRS science in the
near event horizons of instrument on the Astro-E2/ future, but NASA must
black holes. Progress Suzaku mission. evaluate this effort as
towards achieving out- part of the normal bud-
comes will be validated get prioritization process.
by external review.
FY 2006 Follow-up
The Mishap Investigation Board report is not complete; however, preliminary results show the cause of the malfunction was a design flaw in the
cryogenic system. The investigation also identified several concerns with mission level system engineering, and limitations of the ground testing
and review processes. The JAXA Mishap Investigation Board has concluded its work, and the NASA Mishap Investigation Board is close to deliv-
ering its final draft report. NASA will use recommendations to improve future international collaborations.

B-2 NASA FY 2006 Performance and Accountability Report


Appendix B: FY 2005 Performance Improvement Plan Follow-up

Explanation/
Objective

Perfor- description of where a

Rating
mance performance goal Why the goal Plans and schedules
Measure Description was not met was not met for achieving the goal
5 APG Complete the integra- NASA did not complete Delays were due to schedule NASA will integrate and
5SEU1 tion and testing of the integrating and testing the problems with GLAST’s primary in- test the spacecraft bus
Gamma-ray Large GLAST spacecraft bus. strument, the Large Area Telescope in FY 2006. The rebase-

Yellow
Area Space Telescope (LAT). The LAT experienced both line resulted in a delay
(GLAST) spacecraft engineering design and electrical to the launch date, from
bus. parts problems, which required a May 2007 to September
project schedule and cost rebase- 2007.
line.
FY 2006 Follow-up
NASA will complete integration and testing of the spacecraft bus in early FY 2007. The GLAST mission is scheduled to launch November 15,
2007.
6 APG Achieve an average There was one Space A key contributor to the unusually This performance goal
5SSP2 of eight or fewer flight Shuttle mission in FY 2005: large number of IFAs for STS-114 has been eliminated for
anomalies per Space STS-114. For this mission, was a change in the definition of FY 2006.
Shuttle mission in FY there were approximately an IFA made during the Return
2005. 185 In-Flight Anomalies to Flight effort. The change is
(IFAs) reported. This num- documented in NSTS 08126,
ber is approximate since Problem Reporting and Corrective
post-STS-114 hardware Action (PRACA) System Require-
inspections and analyses ments, which became effective
continue; these results on August 27, 2004. Prior to this
could generate additional change in definition, IFAs were a
IFAs as the process unfolds. small subset of problems reported
in the PRACA system; with this
Red

change, any PRACA-reportable


item during the launch preparation
and execution time-frame automati-
cally becomes an IFA. This change
was made as part of the overall
improvement to the Space Shuttle
Program’s problem tracking, IFA
disposition and was documented
in NASA’s Implementation Plan for
Space Shuttle Return to Flight and
Beyond. The Columbia Accident
Investigation Board recommended
anomaly resolution processes.
FY 2006 Follow-up
As stated in the FY 2005 Performance Improvement Plan, NASA eliminated this performance goal.
8 APG Obtain agreement The ISS International Part- In May 2005, NASA initiated the NASA proposed
5ISS5 among the Internation- nership Heads of Agency Shuttle/Station Configuration that the ISS Multilat-
al Partners on the final did meet in January 2005 Options Team study. This team eral Coordination Board
ISS configuration. to endorse the Multilateral conducted a 60-day study of the convene in late October
Coordination Board-ap- configuration options for the ISS 2005 to discuss the
proved ISS configuration. and assessed the related number of proposed configuration
However, in May 2005, flights needed by the Space Shuttle and assembly sequence
Administrator Griffin initiated before it retires, no later than the and that the board, in
a 60-day study on options year 2010. The scope of the team turn, task and oversee
Yellow

for completing ISS assembly study spans ISS assembly, opera- the work of the Space
within the parameters of the tions, and use and considers such Station Control Board
Vision for Space Explora- factors as international partner to assess the technical
tion. The decision based on commitments, research utiliza- aspects of this new ap-
the study requires NASA tion, cost, and ISS sustainability. proach. Following these
to reopen discussions with Decisions based on the study have detailed discussions, the
its partners. By the end required that NASA reopen discus- partnership will meet at
of the fiscal year, NASA sions with its International Partners. the Heads of Agency
began discussions with the level.
International Partners on the
way forward.
FY 2006 Follow-up
International Partners at the Heads of Agency meeting approved final configuration on March 2, 2006.

Appendices B-3
Objective Explanation/
Perfor- description of where a

Rating
mance performance goal Why the goal Plans and schedules
Measure Description was not met was not met for achieving the goal
8 APG Achieve zero Type-A Although there were no The Precooler Assembly, part of NASA will review the
5ISS2 (damage to property Type-A mishaps in FY 2005, the Environmental Control and Life ECLSS mishap investi-
at least $1 M or death) NASA failed to achieve this Support System (ECLSS) flight gation report for appli-
or Type-B (damage APG due to the occurrence hardware, was damaged during the cable lessons learned.
to property at least of one Type-B mishap. tin plating process, damaging the
$250 K or permanent protective braze layer. This breach

Yellow
disability or hospital- rendered the assembly unrecover-
ization of 3 or more able and will result in NASA re-
persons) mishaps in FY questing additional unit(s) from the
2005. ISS Program. The value of the loss
is approximately $350 K. A Mishap
Investigation Board is investigating
the mishap.
FY 2006 Follow-up
NASA implemented lessons learned from the mishap. For FY 2006 there were no Type A or B mishaps in the ISS program.
8 APG Provide at least 80% of While NASA did not meet Due to the delay of Shuttle flight A second successful
5ISS4 upmass, volume, and the 80% goal as planned mission UF1 from March to July, test flight of the Space
crew time for science at the beginning of the fis- the increase to three crewmembers Shuttle will enable NASA
as planned at the be- cal year on these metrics. was delayed from the scheduled to meet the planned
ginning of FY 2005. NASA did meet 97% of the date of May 2005 to a date to be science up-mass and
science objectives during determined in 2006, preventing volume goals, as well
Increment 10 (October achievement of the planned crew as an increase to three
2004–March 2005) and time and up-mass for science goal. crewmembers.
expect a similar achieve-
ment for Increment 11
Yellow

(March–October 2005).
In addition, STS 114
delivered additional science
capacity to the Station,
bringing up the Human Re-
search Facility-2 rack for the
U.S. Destiny lab, deploying
another set in an on-going
material experiment, and
flying three additional sortie
experiments.
FY 2006 Follow-up
NASA was unable to meet the original goal of regularly scheduled Shuttle flights throughout FY 2006 due to foam issues on the external tank.
While these issues were resolved, NASA did not launch the Shuttle until July 2006—10 months after the start of FY 2006. Shuttle flight delays
significantly reduced actual upmass and volume capabilities.
11 APG Identify and define pre- NASA does not have The architecture and long-term link- NASA intends to com-
5LE1 ferred human–robotic complete results, only ages must flow from the Exploration plete this APG in the
exploration systems preliminary concepts. Systems Architecture Study results, third quarter of FY 2006.
Yellow

concepts and architec- NASA’s near-term focus is which was completed in August
tural approaches for on lunar site selection and 2005.
validation through lunar characterization, rather than
missions. human–robotic linkages.
FY 2006 Follow-up
NASA did not meet the schedule for achieving this goal. NASA will complete this APG in December 2006 as part of the Lunar Architecture activity
with periodic updates every 2 years.

B-4 NASA FY 2006 Performance and Accountability Report


Appendix B: FY 2005 Performance Improvement Plan Follow-up

Explanation/
Objective

Perfor- description of where a

Rating
mance performance goal Why the goal Plans and schedules
Measure Description was not met was not met for achieving the goal
11 APG Identify candidate NASA’s near-term focus NASA deferred linkage to Mars Although the schedule
5LE2 architectures and sys- has been lunar exploration; in order to re-allocate resources is unclear, NASA does
tems approaches that extensibility to Mars needs for Constellation Systems not anticipate complet-
can be developed and further work. development. ing this APG before
demonstrated through FY 2007.

Red
lunar missions to en-
able a safe, affordable,
and effective campaign
of human–robotic Mars
exploration.
FY 2006 Follow-up
NASA does not anticipate completing APG 5LE2 before FY 2007.
11 APG Identify preferred ap- NASA has conducted NASA’s near-term focus for robotic NASA intends to com-
5LE6 proaches for develop- limited analysis of space exploration is on site selection and plete this APG in the
ment and demon- operations. characterization. NASA will derive third quarter of FY 2006.
Yellow

stration during lunar linkage to transformational opera-


missions to enable tions from the Exploration Systems
transformational space Architecture Study results and
operations capabilities. architecture development.
FY 2006 Follow-up
NASA did not meet the schedule for achieving this goal. This APG will be complete in December 2006 as part of the Lunar Architecture activity
with periodic updates every 2 years.
11 APG Establish three part- NASA did not form any Not applicable. The program was re-
5HRT12 nerships with U.S. partnerships with industry or structured and is in place
Yellow

industry and the invest- the investment community for FY 2006.


ment community using using the Enterprise Engine
the Enterprise Engine concept in FY 2005.
concept.
FY 2006 Follow-up
In August 2006, NASA executed a Space Act Agreement with a nonprofit entity, Red Planet Capital, for the establishment and management of
NASA’s strategic venture. Red Planet Capital received initial funding from NASA in September 2006. NASA is looking at investment opportunities.
12 APG Demonstrate 70% re- NASA originally funded Because of NASA’s decision to GE will continue low-
5AT5 duction NOx emissions three companies to demon- levy Propulsion 21 earmark entirely NOx combustion work
in full-annular rig tests strate 70% NOx reduction, against the UEET Project, stop- under the Propulsion
of candidate combus- but only one successful work orders were issued. 21 funding, but their
tor configurations for annular rig test is needed to schedule for DDR will
large subsonic vehicle meet this APG’s minimum slip into FY 2006. The
applications. (Vehicle success exit criteria. The P&W funding situation
Systems) curtailment of FY05 funding will be monitored. Final
and the earmarks have termination decisions
severely impacted the and notices are pending.
Red

UEET Project, including the


Low-NOx Combustor DDR
milestone that was planned
for completion during the
second quarter of 2005.
One contractor (P&W) did
complete DDR of their con-
cept in February 2005 and
is continuing with testing
as remaining UEET funds
run out.
FY 2006 Follow-up
NASA terminated work towards this milestone during the restructuring of the Vehicle Systems Program into the Fundamental Aeronautics Pro-
gram.

Appendices B-5
Objective Explanation/
Perfor- description of where a

Rating
mance performance goal Why the goal Plans and schedules
Measure Description was not met was not met for achieving the goal
12 APG Using laboratory data This APG was not com- NASA did not fund any external Progress toward achiev-
5AT22 and systems analysis, pleted in FY 2005 due to trade studies in FY 2005. ing this detail is pending
complete selection substantially limited FY 2005 changes of Demonstra-
of the technologies discretionary procurement tion focus with the Ve-
that show the highest budget that was caused hicle Systems Program

Yellow
potential for reducing by the requirement to fund in FY 2006.
takeoff/landing field Congressional Special
length while maintain- Interest items. The work is
ing cruise Mach, low expected to be completed
speed controllability, in FY 2006. Limited internal
and low noise. studies are on-going.
FY 2006 Follow-up
Work towards this milestone ended during the restructuring of the Vehicle Systems Program into the Fundamental Aeronautics Program.
12 APG Complete flight dem- Although NASA is making This APG was not met due to a NASA will reduce the
5AT20 onstration of a second good progress toward de- $1.25 M reduction in available scope of the flight dem-
generation damage veloping second-generation procurement funds. onstration to limited flight
adaptive flight control flight software, a reduction envelope testing. NASA
system. (Vehicle of $1.25 M in procurement will not demonstrate
Systems) funds, for Congressional the full capability of the
Yellow

Special Interest items, damage adaptive control


will impact completion of system. However, NASA
the APG. The result is a made signficant progress
delayed software delivery and plans to achieve the
schedule and the delayed APG, based on the new
start of the second-genera- scope, within the first
tion flight demonstration. quarter of FY 2006.
FY 2006 Follow-up
The F-15 837 team conducted 17 flights during FY06 to validate the ability of a second generation damage adaptive flight control system to im-
prove aircraft handling qualities with a simulated failure. This APG has been successfully completed.
15 APG Complete Solar NASA completed over 90% The international partner encoun- The mission team is
5SEC1 Terrestrial Relations of Instrument integration for tered numerous technical problems using schedule work-
Observatory (STEREO) STEREO. All U.S. instru- associated with the Heliospheric arounds, weekend work,
instrument integration. ments have been integrated Imager instruments, resulting in and double shifts to
on both spacecraft. Two significant schedule slips. minimize schedule de-
Heliospheric Imager (HI) lays. An HI mass model
instruments being provided is being used on the
Yellow

by an international partner “B” spacecraft so that


muar be integrated. The observatory testing can
HI-A instrument has been proceed. The STEREO
delivered to the spacecraft, launch readiness date of
but technical problems April 2005 is unlikely due
have delayed integration to these HI instrument
until early October 2005. delays.
HI-B delivery is planned for
November 2005.
FY 2006 Follow-up
NASA completed integration of both instruments in November and December 2005. STEREO launched on October 25, 2006.
17 APG Baseline a strategy and NASA completed the NASA is still awaiting detailed NASA plans to initiate
Yellow

5ISS7 initiate procurement of strategy, but has not initated requirements from the Explora- procurement by the sec-
cargo delivery service procurement. tion Requirements Transition Team ond quarter of FY 2006.
to the ISS. (expected in December).
FY 2006 Follow-up
NASA signed Space Act Agreements in FY 2006 for two companies to demonstrate commercial orbital transportation services capability. Once
demonstrated, NASA plans to competitively purchase cargo delivery services.

B-6 NASA FY 2006 Performance and Accountability Report


Appendix B: FY 2005 Performance Improvement Plan Follow-up

Explanation/
Objective

Perfor- description of where a

Rating
mance performance goal Why the goal Plans and schedules
Measure Description was not met was not met for achieving the goal
APG Complete all develop- Deployment of the Space Work on AHMS was interrupted to Processing of the main
5SSP4 ment projects within Shuttle main engine Ad- support testing and processing of engines for return to
110% of the cost and vanced Health Monitoring Shuttle main engines for return to flight is complete, and
schedule baseline. System (AHMS) slipped 21 flight. The July 2006 date could testing facilities at the
Efficiency Measure

months. Deployment to the also be delayed due to the effects Stennis Space Center
fleet is now scheduled for of Hurricane Katrina on main engine are coming back online

Yellow
July 2006. The project re- testing facilities and delays in liquid after Hurricane Katrina.
mains within overall budget. hydrogen production and ship- NASA is working with lo-
ments to the Stennis Space Center cal and national distribu-
in Mississippi. tors to secure shipments
of liquid hydrogen fuel to
complete AHMS certifi-
cation testing.
FY 2006 Follow-up
NASA completed AHMS testing and certification on August 9, 2006. NASA will install the first AHMS controller in monitoring mode on one of the
three main engines of the Space Shuttle Discovery for STS-116, which is scheduled to launch in December, 2006. AHMS will be fully deployed on
all Space Shuttle main engines starting with STS-117 in 2007. The project remains under its budget of $55 million.
APG This Theme will com- The Aviation Safety and The funding of Congressional Spe- Not applicable.
5AT28 plete 90% of the major Security Program was able cial Interest items required approxi-
milestones planned for to meet all its FY 2005 mately 1/3 of the funding planned
FY 2005. objectives by deferring the for acquisitions associated with the
start of the aviation security accomplishment of program/project